Gov't expects to finish GM stock sale by year end - Philadelphia News, Weather and Sports from WTXF FOX 29

Gov't expects to finish GM stock sale by year end

Posted: Updated:

By TOM KRISHER
AP Auto Writer

DETROIT (AP) -- The U.S. government expects to sell the last of its stake in General Motors by the end of the year, bringing an end to a sad chapter in the company's storied history.

The Treasury Department, in a statement issued Thursday, said it still owns 31.1 million shares of the auto giant, less than 2 percent. It plans to sell the shares by Dec. 31, as long as the price holds up.

The government received 912 million shares in exchange for a $49.5 billion bailout during the financial crisis in 2008 and 2009. So far it has recovered $38.4 billion of the money, but selling the remaining shares at Wednesday's $37.69 closing price gets the government $1.17 billion, leaving taxpayers short by roughly $10 billion.

The government says the bailout was needed five years ago to save the American auto industry and more than a million jobs. It never expected to get all of the money back.

"Had we not acted to support the automotive industry, the cost to the country would have been substantial -- in terms of lost jobs, lost tax revenue, reduced economic production and other consequences," Deputy Assistant Treasury Secretary Tim Bowler said in the statement.

Taxpayers' initially got a 61 percent stake in GM in exchange for the bailout. Treasury gradually has sold off its stake since a November 2010 initial public offering.

Shares of GM rose $1.22, or 3.2 percent, to $38.91 in premarket trading Thursday. That's close to GM's one-year high of $39.18.

GM said that work to transform the company continues. "We're making great progress in our efforts to make the most of this second chance by building outstanding cars and trucks, creating jobs and reinvesting in our country."

  • Local NewsLocal NewsMore>>

  • Van Dyke Construction Scheduled Today

    Van Dyke Construction Scheduled Today

    Monday, April 21 2014 3:48 AM EDT2014-04-21 07:48:59 GMT
    A massive construction project is underway in Macomb County. If you travel on Van Dyke, you know how rough it is. Now, jackhammers are out there tearing up a two-and-a half mile stretch from 11 Mile to Chicago Rd. The road will be milled, then resurfaced with asphalt. New curbs will be installed. Nine intersections get new traffic signals. Sidewalks will be ramped to comply with the Americans with Disabilities Act. Weather permitting, the project will be finished this summer.
    A massive construction project is underway in Macomb County. If you travel on Van Dyke, you know how rough it is. Now, jackhammers are out there tearing up a two-and-a half mile stretch from 11 Mile to Chicago Rd. The road will be milled, then resurfaced with asphalt. New curbs will be installed. Nine intersections get new traffic signals. Sidewalks will be ramped to comply with the Americans with Disabilities Act. Weather permitting, the project will be finished this summer.
  • Chrysler Expanding Presence in China

    Chrysler Expanding Presence in China

    Monday, April 21 2014 3:32 AM EDT2014-04-21 07:32:50 GMT
    Fiat and Chrysler announced plans this weekend to build three new Jeep models in China for that market, the biggest for the vehicles outside the United States, as they attempt to boost sales in a country where they lag behind their competitors. The automakers said they will expand their joint venture with China's Guangzhou Automobile Group Co. Ltd., and increase the portfolio of Jeeps, which are currently imported to China. Production is expected to start in late 2015.
    Fiat and Chrysler announced plans this weekend to build three new Jeep models in China for that market, the biggest for the vehicles outside the United States, as they attempt to boost sales in a country where they lag behind their competitors. The automakers said they will expand their joint venture with China's Guangzhou Automobile Group Co. Ltd., and increase the portfolio of Jeeps, which are currently imported to China. Production is expected to start in late 2015.
  • Ford at the Beijing Auto Show

    Ford at the Beijing Auto Show

    Monday, April 21 2014 3:27 AM EDT2014-04-21 07:27:48 GMT
    Ford Motor Co. on Sunday unveiled a new Escort sedan designed in China for global sale at a Beijing auto show that highlighted the growing influence of Chinese tastes on the industry. Automakers are looking to China's biggest auto show this year to help boost sales in this huge but cooling market. Total sales last year reached 17.9 million vehicles, but growth is expected to slow from 15.7 percent to as low as 8 percent, even as newcomers including Lincoln and Tesla enter the market.
    Ford Motor Co. on Sunday unveiled a new Escort sedan designed in China for global sale at a Beijing auto show that highlighted the growing influence of Chinese tastes on the industry. Automakers are looking to China's biggest auto show this year to help boost sales in this huge but cooling market. Total sales last year reached 17.9 million vehicles, but growth is expected to slow from 15.7 percent to as low as 8 percent, even as newcomers including Lincoln and Tesla enter the market.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

WTXF-TV
330 Market Street
Philadelphia, PA 19106-2796

Phone: (215) 925-2929
Fax: (215) 982-5494

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices