Government to Exit GM Ownership by Year's End
The U.S. Treasury announced plans to sell all of its remaining shares in General Motors by December 31, a move that will complement the automaker's recent growth. The federal government will unload 31.1 million shares of GM stock, currently valued at around $1.2 billion. The government's stake is down from 70 million shares in September and is just a fraction of the 912 million shares it had when GM collapsed in mid-2009. The government's decision to exit GM is coming earlier than expected. Almost a year ago, government representatives said it would sell the shares off by April 2014 at a pace dependent on market conditions. Although it is ahead of the timeline, the government does not expect to retrieve the full amount of money it put into GM. It expects to lose more than $10 billion of its $51 billion investment in America's largest automaker. The exit will help GM continue the healthy growth it has made over the past few years. The company is frequently updating its product portfolio to provide consumers with better fuel economy and new vehicle options. GM's retail sales are up 16 percent through October. Once all government shares are sold back, GM will be able to rid itself of the "Government Motors" stigma that has plagued the company for years. GM will also be able to pay dividends to stock holders and may even see a boost in sales from the good news. Source: General Motors
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