During when the bankruptcies of both Chrysler and GM were immident, President Obama announced on March 30 that the federal government would back the warranties of General Motors and Chrysler in the event of bankruptcy. Now that both automakers have existed chapter 11bankruptcy, Ron Bloom, the head of the auto task force, told a House Judiciary subcommittee about the decision to end the program.

“With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis,” Bloom said in his prepared testimony.

The governemnt incurred $641 million (roughly) to run the program, and has asked for a payback. GM and Chrysler have reportedly returned the $641 million, with interest. GM Automotive News it didn’t use any of the funds, while Chrysler declined to comment on the matter.

Source: Automotive News