LOS ANGELES – The government’s giant bailout of the U.S. automotive industry appears to be working, but it’s still not clear whether taxpayers will recoup their investment, a congressional watchdog panel said Thursday.

The taxpayers’ position has “starkly improved” since the last review by the Congressional Oversight Panel in September 2009. At the time, the Congressional Budget Office estimated that taxpayers would lose $40 billion on their automotive investments. The estimated loss now stands at about $19 billion.

The three largest recipients of automotive bailout funds appear to be on the path to financial stability, according to the panel’s assessment. That improves the Treasury Department’s chances of recouping more of the funds.