Auto bailout was mixed blessing for St. Louis area

Print
Email
|

by Craig Cheatham / News 4 and Dan Greenwald / KMOV.com

KMOV.com

Posted on May 1, 2014 at 5:10 PM

Updated Thursday, May 1 at 6:21 PM

(KMOV.com) – A new report shows the federal government lost billions on the auto bailouts, but one St. Louis area town was hit even harder.

Both General Motors and Chrysler were bailed out in 2009. A new government report shows taxpayers lost $2.9 billion bailing out Chrysler, who at one time owned two plants in Fenton.

Shortly after receiving bailout money, Chrysler pulled out of Fenton. Mayor Michael Polizzi said the town is still trying to heal.

"It hurt the city. It hurt the school district, the fire department and anyone who depended on tax money from that development," Polizzi said.  “Left our town and left our site looking like Zombieville."

Fenton residents told News 4 they hope a new development will be built on the plant’s site soon.

In Wentzville, the story is entirely different.  The United Auto Workers and the city are happy that the government invested in General Motors. Taxpayers lost $11.2 billion bailing out GM, but the company’s Wentzville plant stayed open and later expanded.

KP Development currently has the site of the closed Chrysler plant under contract and its president told News 4 it plans to buy the site this upcoming summer. For more on the plans for the site, click here.

Print
Email
|