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GM agrees to upping U.S. production, files revised IPO prospectus

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GM agrees to upping U.S. production, files revised IPO prospectus

David Shepardson and Christina Rogers / The Detroit News

General Motors Co. has agreed to produce 1.6 million vehicles in the United States in 2010.

The company -- responding to questions from the Securities and Exchange Commission -- filed an amended prospectus this morning for its public offering, which is expected by year's end.

Included was a Sept. 22 letter to the Treasury Department that said GM would use its "commercially reasonable best efforts" to produce at least 90 percent of agreed-upon targets of production in the United States.

By 2014, GM agreed to produce at least 2 million vehicles in the U.S. -- 90 percent of previously set targets under GM's loan agreements with the Treasury Department.

GM has produced 1.14 million vehicles in the United States through August and is on pace to produce 1.7 million this year.

The letter also notes that GM -- complying with the requirements of the $700 billion Wall Street and auto bailout fund -- doesn't own any corporate aircraft. It is acquiring AmeriCredit for $3.5 billion by year's end. The Texas lender owns a company jet. GM will sell the plane after it buys AmeriCredit and won't use it to ferry company executives before a sale.

The revisions are largely technical on a first read and include a new risk factor -- investors in GM's public offering might impact the "ability to bring a claim against Canada Holdings under the U.S. securities laws or otherwise, or to recover on any judgment against it."

The revisions also clarify which purchasers of GM stock might be subject to U.S. taxes if the stock rises in value.

The filing also adds some snazzy new photos of GM vehicles on the front and back cover, with a Buick on the front.

But the new filing doesn't answer some of the crucial questions: how much stock the Treasury Department will sell and at what price -- along with whether the United Auto Workers health care trust fund and the former GM bondholders will participate in the offering.

The Treasury Department holds a 61 percent equity stake in General Motors Co. that it received for about $43 billion of its $50 billion bailout.

From The Detroit News: http://detnews.com/article/20100923/AUTO01/9230441/1148/auto01/GM-agrees-to-upping-U.S.-production--files-revised-IPO-prospectus#ixzz10OR2nKnU

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