AUTO INDUSTRY NEWS

U.S. Department of the Treasury to sell remaining GM stake

U.S. Department of the Treasury to sell remaining GM stake image

Text: / Photos: GM Press | posted May 07, 2013 15:02

Move to improve GM's image and overall sales

The U.S. Department of the Treasury said on Monday that it is now preparing another round of sales of the remaining 241.7 million shares of the General Motors Co. common stock that was acquired by the department during the government's bailout of the country's automotive sector.

This move will bring GM a step closer to regain its ownership of the company since the 2009 bailout after it repurchased 200 million shares of its common stock from the treasury last December for $5.5 billion.

"We are pleased with the progress to date and will continue exiting this investment in accordance with our previously announced plan and timetable, and in a manner that maximizes returns for taxpayers," Tim Massad, Treasury assistant secretary for financial stability, said in a statement.

The move is also expected to improve the company's image as the US's biggest automaker and result to a boost in its overall sales.

source: Reuters