GM has no plans to request more government aid
By Andrew C., 27 Aug, 2010. 0 Comments
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Since the amount of financing provided to General Motors Co. was sufficient, it has no plans to request more government aid, CEO Fritz Henderson told the Washington Post last Wednesday. Henderson was in Washington for meetings with congressional and Obama administration officials. Henderson said during the interview that reasonable scenarios that GM is expected to face don't involve the need for more assistance.
Henderson said that GM continues to provide information of the status of the business to the US Treasury, which is a major shareholder. The US Treasury now holds a 60% stake in GM after giving it $50 billion in bailout and bankruptcy assistance but GM emphasizes that the Treasury is not involved in the business. Henderson also said that the US government has an "excellent chance" of getting a return on its investment. Steven Rattner, who headed the Obama administration's efforts to patch up the auto companies this year, said last week that taxpayers have almost recovered their investment in GM -- on paper, at least. Reportedly, taxpayers hold a combination of equity and debt in GM totaling $30 billion. [via autonews]
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