The auto industry is surging back and GM has offered to buy back 200 million shares from the US Treasury Department, after its bailout in 2009. The government plans to sell all of the remaining shares back to GM in the next 18 months.
This is a huge milestone for the auto industry and Detroit, and shows progress and confidence in GM’s future. GM will pay $27.50 per share at an 8% interest rate, as per the GM/Treasury contract.
Getting rid of government involvement with the company will boost car sales and promote confidence in the GM brand.
Since the bailout, GM has stated they have retained 20,000 American jobs.
Categories: Detroit News