US Treasury to sell remaining GM stakes by end of 2013

Article by Anita Panait, on November 22, 2013

The United States Treasury Department expects to sell its remaining shares at General Motors Co. by the end of the year. According to the Treasury, the final GM share sale would occur by year-end, subject to market conditions and if average daily trading volumes continue at recent levels. Treasury said it already had sold 70.2 million shares of GM stock and to date had recovered $38.4 billion from the $49.5 billion used to bail out the carmaker years ago.

At current prices, Treasury could recover another $1.2 billion from its remaining stake at GM, pegged at 31.1 million shares. That would bring the total recouped amount to $39.6 billion, which is around $10 billion short of the bailout amount. Treasury remarked that its initial cost basis for the GM shares was $43.52 per share.

The carmaker announced in December 2012 that it would sell all its stake in GM in at least a year to 15 months – which means that completing the GM stake sale by the end of 2013 is on the earliest end of its target. Despite the shortfall, the Treasury reiterated that their goal in providing the bailout money was never to make a profit, but to save the US auto industry.

Carmakers have posted an 8.4-percent rise in sales in the US in the first 10 months of 2013, full year sales are expected to reach 15.5 million vehicles, which is way above the 10.4 million units sold in 2009. All three Detroit carmakers are now profitable. Most of the profits are driven by large pickup trucks and sports utility vehicles. Sales of such vehicles accounted for over two-third of GM's global pre-tax earnings.

Topics: us treasury, gm, shares

If you liked the article, share on:

Comments

Recommended

Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 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