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General Motors pushing U.S. to sell stake: report

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posted on Sep, 17 2012 @ 01:49 PM
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General Motors pushing U.S. to sell stake: report

A few months ago General Motors presented a plan to repurchase 200 million shares of stock that is currently owned by the U.S. Treasury.

Sounds like good news if GM was able to do this.

The U.S. Government owns 500 million shares of GM.

But guess what......

The Treasury said Thanks but no Thanks !!!!

That's because the sale would represent a giant loss.

A loss?

Well we all thought the bailout was supposed to help the company, not anyone else?

GM says the pay restrictions imposed by the Government are preventing "top talent" from coming to GM.


CHICAGO (MarketWatch) -- The Treasury Department is resisting General Motors' push for the government to sell off its stake in the auto maker, The Wall Street Journal reports. Following a $50 billion bailout in 2009, the U.S. taxpayers now own almost 27% of the company. But the newspaper said GM executives are now chafing at that, saying it hurts the company's reputation and its ability to attract top talent due to pay restrictions. Earlier this year, GM presented a plan to repurchase 200 million of the 500 million shares the U.S. holds with the balance being sold via a public offering. But officials at the Treasury Department were not interested as selling now would lead to a multibillion dollar loss for the government, the newspaper noted.


Is this an example of government "interference" restricting free enterprise ?

Looks like the "taxpayers" are still on the hook
 


Related:


But GM executives have grown increasingly frustrated with that ownership, and the stigma of being known as "Government Motors." Executives have said the U.S.'s shadow is a drag on its reputation and hurts the company's ability to recruit talent because of pay restrictions. Privately, executives are also irked at the continued curbs on corporate jet use.

U.S. Balks at GM Plan




DETROIT—The Treasury Department is resisting a push by General Motors Co. to sell the government’s entire stake in the auto maker—the latest source of tension between two unlikely partners thrust together at the depths of the financial crisis.

U.S. Reluctant to Sell GM at Big Loss




posted on Sep, 17 2012 @ 01:59 PM
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no worries, gm will be bankrupt very soon anyhow.
then it will be a $100 billion loss instead of 30.

osama is dead and GM is dead.
wait,
i mean alive.

yeah alive.



posted on Sep, 17 2012 @ 02:09 PM
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Doesn't look like now is the time to sell.


The Journal points out that if the stock is sold at the current price of about $24, it would trigger a loss of $15 billion. Shares would need to rise to $53 for Treasury to get its money back. GM’s shares reached almost $40 in early 2011.

And


GM’s CEO Daniel F. Akerson has been widely criticized for two things.


The first has to do with GM’s ongoing losses at its Europe operations — Opel and Vauxhall. GM lost $341 million in Europe in the second quarter and, on an annual basis has lost money since 2000 which at this point totals $12 billion. There is no end in site for the losses. GM has bled market share in Europe. The company’s market share in the region was 8.4% in the second quarter, down from 8.8% the quarter before. The market remains dominated by VW, BMW and Daimler, PSA Group and Renault Group.


The second problem GM has not been able to solve is that its U.S. sales have flagged. Toyota (NYSE: TM), pushed part way out of the market by recalls and slow production due to the Japanese earthquake, has roared back. GM’s U.S. market share through eight months last year was 20%. That was down to 18.1% through the same period this year. GM’s products have not been good enough to keep sales moving up as fast as the market in general.

So


GM needs to show the government, and its other investors, that it has a means to get its shares back to $30, before there is any discussion about $40 or $50. Treasury can wait GM out until Akerson retires or is fired and a new management team gets a shot at improving the firm’s earnings.


24/7 Wall st

But, Yeah, blame the Government.

edit on 17-9-2012 by BritofTexas because: (no reason given)



posted on Sep, 17 2012 @ 02:19 PM
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GM is a bad investment too many outstanding shares, too close government ties. and 500 millions of shares owned by the government?

No anyone with with half a brain would not touch GM stock the treasury said too much of a loss that is laughable they have lost billions on GM,Fanny and Freddy and other stupidity.



posted on Sep, 17 2012 @ 02:21 PM
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or hire mitt romney and bain capital to do what they do best.

layoff everybody, sell all its assets and the u.s. government will turn a $100 billion profit.



posted on Sep, 17 2012 @ 02:23 PM
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or hire mitt romney and bain capital to do what they do best.

layoff everybody, sell all of its assets and the u.s. government will turn a $100 billion profit.

but isn't state ownership of business a communist and fascist ideal.



posted on Sep, 17 2012 @ 02:25 PM
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reply to post by xuenchen
 


"When you sup with the devil, use a long spoon."
-Someone who obviously enjoyed soup



posted on Sep, 17 2012 @ 02:40 PM
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reply to post by randomname
 


Not paying attention to the last 4 years?

hummer sold off(an asset)

Gm not turning a profit

Spending half a billion dollars on the Volt.

But hey the Unions sure turned a profit.
edit on 17-9-2012 by neo96 because: (no reason given)



posted on Sep, 17 2012 @ 02:51 PM
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I wonder if GM made the same proposel to the Canadian government as we hold through a shadow company a huge allotment of shares in the failing car giant.

But then again whats anyone care, some guy who puts in 6 screws on a speaker cover gets paid $70/hr, all due to tenure as opposed to having skills worthy of the union boondoggle that GM is. Kill the company then all those entitled overpaid workers will see what they and there bosses have done to the industrial market, with wages and kick backs that were obviously unsustainable....

Part had me laughing "some execs still upset over no use of private jets" bloody taxpayer owned failing company and they still deserve perks of a well run business gimme a break....

SaneThinking



posted on Sep, 17 2012 @ 02:56 PM
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everyone buy a Volt.


seriously though GM is going down and our investment with it. they should have let them go down the first time.



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