The U.S. Department of the Treasury has disposed another portion of its holdings in General Motors Co. to trim its stake to 7.3%. The Treasury sold over 110 million shares between May 6 and Sept. 13, 2013 and has raised over $3.82 billion, according to documents posted online. The move is part of the Treasury’s exit plan announced in December 2012, when it said it would sell its entire stake in GM in 12 to 15 months.
The Treasury originally had a 60.8% stake in GM, which is now reduced to 101 million shares. Once the government has completed selling all its GM shares, it would have recovered about $35.4 billion of its investment in GM.
Treasury Assistant Secretary Timothy Massad said in a statement that the department is on track to complete its exit from GM by early next year “at a cost far less than originally projected.
GM shares closed Tuesday at $36.71, which means that the Treasury's remaining stake was valued at about $3.7 billion at the start of trading Wednesday and the department would lose around $10 billion on the bailout of GM.
Treasury officials have said that the US government will lose $15 billion on the $85-billion auto industry bailout that included Chrysler. Massad said the bailout was not intended to make a profit, but to save the American auto industry and around one million jobs.