Thursday General Motors’ CEO, Dan Akerson verified that the federal government, or taxpayers rather, will not likely recover all of the money provided to rescue GM from the edge of collapse immediately following the car corporation’s nitial public stock offering, anticipated to happen as soon as mid-November, however could not respond to more particular questions with regards to the actual sale.
Akerson stated that it remains as GM’s objective to make it possible for the government to be able to sell its position in GM, as time passes, for a price that would be high enough for the U.S. Treasury to regain the outstanding $43 billion of bailout funds. He was referring to the fact that GM must be maintain profitability in order for buyers to pay these kinds of prices.
The $50 billion government bailout of GM saved a lot of jobs and helped to preserve the country’s manufacturing base. said Ackerson, a former telecommunications industry executive and GM board member since July 2009.
“I don’t think that’s going to be in one fell swoop. So we have to post those numbers and provide some consistent results. Over the next couple of years, that will happen.” Ackerson is reported as saying according to an Associated Press report from Detroit. For the first half of this year, GM reported a profit of $2.2 billion.
Some car buyers are resentful of the bailout and this has hurt GM’s sales. Still the automaker hopes the stock sale will raise money for investment and to reduce debt as well as ending its government ownership.
GM has already paid back $6.7 billion of the funds the government provided in order to preserve the corporation and also help it get through bankruptcy protection last year. The outstanding $43 billion had been transformed to a 61 percent ownership stake. GM has submitted documents commencing the particular procedure to be able to sell stock to the public.
