GM News: End Of 'Government Motors', U.S. Treasury Sells Final Shares Of GM

[William Maley]

William Maley

Staff Writer - CheersandGears.com

December 9, 2013

'Government Motors' is no more. Today, the U.S. Treasury sold its remaining shares of General Motors, ending a four-year ownership of the automaker. The Treasury says it recouped $39 billion of its original $49.5 billion investment into GM.

“The U.S. Treasury’s ownership exit closes just one chapter in GM’s ongoing turnaround story. We will always be grateful for the second chance extended to us and we are doing our best to make the most of it. Today is not dramatically different from the hundreds of preceding days during which we have worked to make GM a company our country can be proud of again,"said GM CEO Dan Akerson in a statement.

“Continued investments, innovation, and job creation are just some of the “returns” of a healthy GM and domestic auto industry. Our work continues uninterrupted, and we will keep our sights squarely on our customers and transforming the way we do business.”

GM's North American President, Mark Reuss told reporters that this could help bring more customers into the showroom and help improve the company's image.

“I think probably some people will begin to consider us right away, maybe the next day.”

Source: Automotive News (Subscription Required), General Motors

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[David]

Sad, I wish the GOV had a long term interest in the growth of GM and held onto the shares as it would have paid back 100% if not more eventually.

[riviera74]

Sad, I wish the GOV had a long term interest in the growth of GM and held onto the shares as it would have paid back 100% if not more eventually.

I disagree. Remember when FORD tried to harp on the fact that they never got bailed out and the federal government told them to back off?

There are some people who think that GM and Chrysler should have died nearly five years ago. GM is much better off having no financial relationship with Treasury.

[David]

Sad, I wish the GOV had a long term interest in the growth of GM and held onto the shares as it would have paid back 100% if not more eventually.

I disagree. Remember when FORD tried to harp on the fact that they never got bailed out and the federal government told them to back off?

There are some people who think that GM and Chrysler should have died nearly five years ago. GM is much better off having no financial relationship with Treasury.

I agree that any business is better off not having a relationship with the gov, but if you take a bail out, it should be paid back penny for penny, not at a loss.

I also do not think FORD is better off for going the route they went. They have many quality problems still and they still have a large amount of debt that will make it much harder down the road. I still see large executive payout and only a token payment onto debt. I have to question FORD long term thinking.

[Drew Dowdell]

The biggest evidence that not all at Ford is what it appears to be: The failure to do anything with Lincoln.

The Government will get far more back than that loss in the long run via income taxes from employees of a living GM, its dealerships, its suppliers, and so on. Had we let GM fail, the loss to the taxpayers and throughout the economy would have been far greater than $10 billion.

[Z-06]

Sad, I wish the GOV had a long term interest in the growth of GM and held onto the shares as it would have paid back 100% if not more eventually.

I disagree. Remember when FORD tried to harp on the fact that they never got bailed out and the federal government told them to back off?

There are some people who think that GM and Chrysler should have died nearly five years ago. GM is much better off having no financial relationship with Treasury.

I agree that any business is better off not having a relationship with the gov, but if you take a bail out, it should be paid back penny for penny, not at a loss.

I also do not think FORD is better off for going the route they went. They have many quality problems still and they still have a large amount of debt that will make it much harder down the road. I still see large executive payout and only a token payment onto debt. I have to question FORD long term thinking.

GM did not hold a gun to government's head seeking to sell the shares at a loss. So I would leave it out of the picture of paying back penny for penny. Theoretically it paid penny for penny to the government.

[Camino LS6]

Whew!

Glad that's over.

When does the Pontiac revival start?

Oh, and I saw figures of something like $100 Bn. that a GM failure would have cost the government without the bailout.

[SAmadei]

Yeah, bring back Pontiac!

Now would be a good time to restart G8 production (as a Grand Prix), unveil a new Trans Am and show off the new ATS-based "G6" selling for $20K. Oh, and bring out the G8 ST!

[Camino LS6]

Something... anything...

GM is so boring these days.

[David]

I disagree that GM is boring, plenty of exciting products. I do think they could via the GMC/Buick dealerships have a Performance based set of auto's that could get a Pontiac name.

[Camino LS6]

I disagree that GM is boring, plenty of exciting products. I do think they could via the GMC/Buick dealerships have a Performance based set of auto's that could get a Pontiac name.

Well, I'm afraid that I find the current lineup to be quite boring.

As for the rest of your post - yes please!

[David]

I disagree that GM is boring, plenty of exciting products. I do think they could via the GMC/Buick dealerships have a Performance based set of auto's that could get a Pontiac name.

Well, I'm afraid that I find the current lineup to be quite boring.

As for the rest of your post - yes please!

I understand to each their own. I feel that you could have some hot auto's. The success of the Terrain should make GMC do a Typhoon edition of it with a turbo'd V6 AWD. I think they should also bring back the Syclone. Same with the Chevy side of the family, I believe you could have some true hot SS models in the new mid size truck and small to mid CUV category.

I think Buick should have a performance set of Auto's tied into the Pontiac naming as a Package.

I feel that Hummer should have never been a stand alone name plate but a Extreme Off Road Package for Professional Grade trucks & SUV's by GMC.

[Gnitro]

I always thought that Pontiac could be mostly a division for GM performance vehicles that are not otherwise available in the US. Such as when they had the GTO, and then the G8. But with Holden vehicles not being made in Australia for much longer the possibilities would be reduced.

All that would really be needed to start is: a small AWD Sedan and Hatch with a 225ish H.P. turbo 4 (Sonic sized) or 275ish H.P. (Cruze sized). A Malibu sized Sedan and Coupe with a 325ish H.P. Twin Turbo V-6 and AWD. A Sedan, Coupe, Wagon and Ute with a V-8 450+ H.P similar to current Holden options (also available with a V-6 Diesel). And if they really wanted to get crazy try to collaborate with Suzuki for a Pontiac branded motorcycle just to surprise people. If they went and worked with Lotus again for engineering help and a shared Twin Turbo V-6 that would be even more awesome in my opinion.

[6t5frlane]

William Maley

Staff Writer - CheersandGears.com

December 9, 2013

'Government Motors' is no more. Today, the U.S. Treasury sold its remaining shares of General Motors, ending a four-year ownership of the automaker. The Treasury says it recouped $39 billion of its original $49.5 billion investment into GM.

“The U.S. Treasury’s ownership exit closes just one chapter in GM’s ongoing turnaround story. We will always be grateful for the second chance extended to us and we are doing our best to make the most of it. Today is not dramatically different from the hundreds of preceding days during which we have worked to make GM a company our country can be proud of again,"said GM CEO Dan Akerson in a statement.

“Continued investments, innovation, and job creation are just some of the “returns” of a healthy GM and domestic auto industry. Our work continues uninterrupted, and we will keep our sights squarely on our customers and transforming the way we do business.”

GM's North American President, Mark Reuss told reporters that this could help bring more customers into the showroom and help improve the company's image.

“I think probably some people will begin to consider us right away, maybe the next day.”

Source: Automotive News (Subscription Required), General Motors

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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So they still owe 10.5 billion and got off the hook....

[Drew Dowdell]

No... they didn't owe anything. The government chose to sell at a loss.... it's the government's stupid fault for buying high and selling low.