General Motors Renaissance Center, Detroit, Michigan
It’s been a while since we last heard about the financial state of the newly formed General Motors Company and the bankruptcy of the automaker’s former state. A Treasury official overseeing the government’s bailout of the struggling automaker has now revealed that an initial public offering will take place as scheduled next year.
The information comes from Herb Allison, the Treasury Department’s assistant secretary for financial stability, who spoke recently in front of the Senate Banking Committee.
GM has received about $50 billion from the government so far, entitling it to a 60.8% equity stake in the automaker.
To recoup most of these funds, the government plans to sell off its stake. However, the Treasury is still in the early stages of preparing for an initial public offering for GM and selling the entire 60.8% stake will take several years at the least.
A similar strategy is expected to unfold for Chrysler, although an initial public offering is farther off, Allison also revealed. The government’s loan to Chrysler measures up at approximately $15 billion.