Steve Rattner, top advisor to President Barack Obama’s auto task force, said today that he expects GM to “expeditiously” exit bankruptcy in the coming days. He said that the Obama administration would not “micromanage” GM.
The United States government will own a 60.8 percent stake in NGMCO, Inc., which will change its name to General Motors Company and continue to operate under GM”s corporate and sub brands. The UAW Retiree Medical Benefits Trust will hold a 17.5 percent, while Canada and Ontario governments and the bondholders will hold an 11.7 percent and 10 percent stake respectively.
Separately, Rattner said that GM must convince consumers that the quality of its vehicles has improved to stop a decline in U.S. market share and survive after bankruptcy.
Rattner said that the quality of GM vehicles has improved, citing the Chevrolet Malibu as an example.
“We believe this plan will work, but now it has to be executed,” he said.
– By: Omar Rana
Source: Detroit News