The US Treasury has finally sold off the last of its remaining share of General Motors stock. This brings to an end four years of government ownership that led to many calling the company by the unflattering nickname of Government Motors.
When all was said and done, the US ended up taking a loss on the stock, just as expected. The total loss came to $10.5 billion dollars. The original investment by the US Treasury which gave them a 61% stake in the company was $49.5 billion dollars to help the then struggling automaker turn itself around. Most of the money recouped by the US Treasury was through stock sales, but General Motors did make a repayment of $6.7 billion back in 2010.
“The U.S. Treasury’s ownership exit closes just one chapter in GM’s ongoing turnaround story,” said General Motors Chairman and CEO Dan Akerson. “We will always be grateful for the second chance extended to us and we are doing our best to make the most of it. Today is not dramatically different from the hundreds of preceding days during which we have worked to make GM a company our country can be proud of again.”
The bailout may have cost taxpayers a good chunk of money, but it also saved a quite a few jobs that may have otherwise have been lost. The US Treasury estimates that not only were many jobs saved, but 370,000 new jobs were created in the automotive industry as a result of the bailout.
News of the US Treasury’s selloff of General Motors shares was very good for the company’s stock which rose to the highest level it’s seen in three years. It could also bode well for future car sales as many consumers who were frustrated at the bailout begin to once again see General Motor in a positive light.
Check out our First Drive Review of the 2014 Chevy Corvette Stingray, something we might never have seen without that bailout!
Nicole Wakelin fell in love with cars as a teenager when she got to go for a ride in a Ferrari. It was red and it was fast and that was all that mattered. Game over. She considers things a bit more carefully now, but still has a weakness for fast, beautiful cars. Nicole also writes for NerdApproved and GeekMom.