Paying back the government will take several years, says GM’s Akerson

Article by Christian Andrei, on September 16, 2010

How fast General Motors Co. repays the bailout it received from the US government will determine its results in the next several years, according to GM CEO Dan Akerson.

In a meeting at GM headquarters in downtown Detroit, Akerson said that it would be “unrealistic” for GM to be able to pay back the government all at once. Akerson said that GM isn’t considering on making more management changes.

It can be recalled that within a week after the announcement that Akerson will take over from CEO Ed Whitacre, GM had filed plans for a public stock offering.

Akerson took the CEO position on September 1 and at the end of the year, he will become chairman. In July 2009, Akerson was named to GM's board after it emerged from a government-funded bankruptcy that led to the Treasury getting a stake of almost 61%.

Expected to take place in November, the IPO will enable GM to silence detractors who has named the company as “government motors.” The IPO would also mean that the government will start to shed its stake. Akerson declined to provide details about the IPO. [via autonews - sub. reqiured]

Topics: gm, ceo, dan akerson

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