Following GM IPO, Obama says auto industry on the rise again

GM CEO Dan Akerson at New York Stock Exchange

“Today, one of the toughest tales of the recession took another big step towards becoming a success story,” President Obama said, referring to the IPO of GM stock. The U.S. Treasury is poised to recoup $13.6 billion of its investment in the once fledgling GM. At that rate, the government would have to sell its remaining 37% stake in the company at a rate of $53 per share in order to recoup the total investment.

The president also said that taxpayers are well positioned to recoup more than was invested by his administration. The government is hoping to be totally divested of its GM stake by mid to late 2012.

GM is also eager to shed the government, given the amount of public animosity towards the bailouts. “A lot of the public animosity to the bailouts is based on principle as much as it is on performance,” said Chris Borick, director of the Institute of Public Opinion at Muhlenberg College in Allentown, Pa. “Even the good bottom-line news from GM won’t necessarily overcome the broader dislike of government support for struggling corporations.”

– By: Stephen Calogera

Source: Automotive News (Subscription Required)