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The 'New GM' will find it tough driving out of trouble

Business Times - 03 Jun 2009


The 'New GM' will find it tough driving out of trouble

By LEON HADAR
WASHINGTON CORRESPONDENT

AFTER buying more than 60 per cent of General Motors (GM), America Inc and the millions of American shareholders (aka taxpayers) are probably not very cheerful owners of a company going through the fourth largest bankruptcy in US history. In fact, America Inc's CEO and President Barack Obama told reporters on Monday that the federal government was a 'reluctant shareholder' in GM, he had 'no interest in running GM' and 'the federal government will refrain from exercising its rights as shareholders on all but the most fundamental decisions'.

In any case, no one has been surprised that after years of losses and the recent collapse in sales, GM would file for bankruptcy protection or by the fact that the federal government ended up with ownership in the company that during its heyday in the 1950s was regarded as an integral component…