$489.9 million in GM Shares Sold by US In February
Among the politicized criticism levied against the purveyor of the Chevy Volt was that it was created in the midst of perceptively dark days when taxpayer money was used to bail its parent company out in 2009.
The federal government was – and yet is – a still a substantial shareholder, but it’s taking steps to end that stage in the corporation’s history.
At the rate of an ongoing federal sell-off from an initial $50 billion stake now underway, the moniker of “Government Motors” could no longer be justifiably applied against General Motors some time within the next 15 months.
On Monday, the Treasury disclosed it had divested itself of $489.9 million in GM shares leaving it still holding about 300 million shares, or about a 19-percent stake on a fully diluted basis, according to Automotive News.
In January, it was reported the federal government sold $156.4 million in GM shares. The government will reportedly disclose the average share price for stock that it sells after each pre-arranged plan for the stock’s trade is finalized.
In December, GM bought $5.5 billion of its own stock back from the Treasury.
At the same time, GM has reportedly been building for itself a “fortress balance sheet” and attempting to conservatively restore itself to increased profitability.
Its commitment to the electrified vehicle space it says is strong, and intended to grow. Its present product offerings are a mix of not-as competitive mild eAssist hybrids, two-mode light truck hybrids, the pending Spark EV, and the top-selling plug-in, the Volt and pending Cadillac ELR plug-in.
The bailout was the subject of much heated criticism and debate, and it’s generally agreed closing the door on that should in time help mend public perceptions where they have been damaged.