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.

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    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

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