News / Economy

US to Sell Last of Its Stake in General Motors

Mark Reuss, President of GM North America, introduces 2015 Chevrolet Colorado at the 2013 Los Angeles Auto Show, Calif., Nov. 20, 2013.
Mark Reuss, President of GM North America, introduces 2015 Chevrolet Colorado at the 2013 Los Angeles Auto Show, Calif., Nov. 20, 2013.
The U.S. says it plans to sell the last of its ownership stake in automaker General Motors by the end of the year.

The government owned 61 percent of the world's second biggest auto manufacturer five years ago. The U.S. took control of GM after handing it a nearly $50 billion bailout to keep it from collapsing at the height of the steep American economic downturn in 2008.

But the government has gradually been selling portions of the 912 million shares it owned, leaving its stake at less than 2 percent. The government has so far recovered more than $38 billion of its bailout. At GM's current stock price of about $38 a share, the government would recoup more than another $1 billion with the sale of its last 31 million shares.

In the final accounting, the government investment in GM could cost taxpayers about $10 billion.

But a Treasury official, Tim Bowler, said Thursday that if the government had not bailed out GM and another automaker, Chrysler, "the cost to the country would have been substantial," with lost jobs and lower economic growth.

Overall, the government says it has come out slightly ahead with its investments in failing businesses during the economic downturn that was the country's worst in seven decades. The U.S. handed out more than $421 billion in bailouts and so far has recovered more than $431 billion.

You May Like

Sydney Hostage-taker Failed to Manipulate Social Media

Gunman forced captives to use personal Facebook, YouTube accounts to issue his demands; online community helped flag messages, urged others not to share them More

UN Seeks $8.4 Billion to Help War-Hit Syrians

Effort aimed at helping Syrians displaced within their own country and those who've fled to neighboring ones More

Who Are the Pakistani Taliban?

It's an umbrella group of militant organizations whose objective is enforcement of Sharia in Pakistan 'whether through peace or war' More

This forum has been closed.
Comment Sorting
Comments
     
by: Ian from: USA
November 22, 2013 11:38 AM
1) " In the final accounting, the government investment in GM could cost taxpayers about $10 billion."
The country swallowing step number one, according to the government experts in order to fulfill step number 2 below
2) "But a Treasury official, Tim Bowler, said Thursday that if the government had not bailed out GM and another automaker, Chrysler, "the cost to the country would have been substantial," with lost jobs and lower economic growth"

Is that really true ? General Motors expanded its small truck and SUV manufacturing in China 4 months after closing down facilities in Janesville, Wisconsin, increased its manufacturing capacity in China by 55 percent .They also planned to open 4 new assembly plants in China by the end of 2015
Americans are still standing in lines looking for jobs , why do we bailed out companies that provide plenty of new jobs for chinese and no new jobs for americans . Does the chinese government pay for the unemployment cost burden here ?

Shouldn't we have a piece of paper signed by these companies pledging new jobs here before handing out our precious money

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US: Response to Sony Hack Will Be Proportionali
X
Aru Pande
December 19, 2014 1:45 AM
The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video US: Response to Sony Hack Will Be Proportional

The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8140
JPY
USD
118.81
GBP
USD
0.6402
CAD
USD
1.1597
INR
USD
63.066

Rates may not be current.