Former GM CEO Ed Whitacre urging US government to sell its stake in the automaker

Article by Christian A., on September 21, 2012

Former GM CEO Ed Whitacre is urging the U.S. government to sell all of its stake in the automaker as soon as possible. According to an opinion piece released in The Wall Street Journal, Whitacre described the Treasury Department's holding a "distraction" for the company, which emerged from U.S.-funded bankruptcy protection over three years ago.

Presently, the Treasury owns around 26.5% of GM's shares. He wrote that the U.S. government would have to sell the shares left or else, it won’t ever be able to remove its "Government Motors" label. He explained that this moniker can be translated to mean that the automaker is a “failure.” He asserted that GM has turned itself around since then.

The Troubled Asset Relief Program had funded the bailout for GM amounting to $50 billion so it actually defines the rules on how to spend the money. Whitacre said that because of this, GM wastes a lot of time talking with Washington officials about compensation, management, and hiring. He believes that this prevents GM from acting as the “master of its own destiny."

Until GM's initial public offering in November 2010, Treasury owned about 61% of GM's common shares, or 912 million shares. Before the IPO, Whitacre had hoped that the U.S. government will sell all of its investment.

He said that if the stock fell short, the automaker will make up for the difference using cash. He said that if that had happened, it would have saved GM’s image and made Wall Street believe that GM was back. But then, they didn’t want to try offering anything that big because no one had ever attempted it previously.

Topics: gm, ceo

If you liked the article, share on:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries