The U.S. Treasury will not seek to influence management decisions at General Motors Co and Chrysler LLC after providing the automakers with some $70 billion in financing to restructure in bankruptcy, a White House adviser said yesterday. “The Obama administration is a reluctant shareholder in New General Motors as well as New Chrysler,” Ron Bloom, senior adviser to the White House-appointed auto task force, told a congressional oversight meeting in Detroit, according to Reuters. He added the emergency government assistance had prevented bankruptcy for two of the three U.S. automakers, but added that “in a better world, the choice to intervene would not have had to be made.” Bloom said the success of the Obama administration’s efforts to save GM and Chrysler will be judged now on how fully and quickly taxpayer funding is repaid. An initial public offering of stock in the restructured GM could come as soon as 2010 and include some combination of new shares and the sale of government-held stock.
U.S. Vows to be Passive GM, Chrysler Investor
The U.S. Treasury will not seek to influence management decisions at General Motors Co and Chrysler LLC after providing the automakers with some $70 billion in financing to restructure in bankruptcy, a White House adviser said yesterday.
July 28, 2009