As you all know by now, when the ‘New GM’ comes out of bankruptcy court in 60 to 90 days the U.S. government will own 60 percent of the company. The Canadian governments will own 12 percent while the UAW will own 17.5 percent. GM bondholders will take a 10 percent stake.
Speaking earlier today to the media, President Barack Obama said: “We are acting as reluctant shareholders. What we are not doing – what I have no interest in doing – is running GM.”
He said that the New GM will be run by a private board of directors and management team. “They, and not the government, will call the shots and make decision about how to turn this company around.
“The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions. When a difficult decision has to be made on matters like on where to open a new plant or what type of new car to make; the New GM – not the United States government – will make that decision.
He said that the U.S. government’s main goal is to get GM back on its feet with a hands-off approach and get out quickly.
– By: Omar Rana