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US will be 'hands off' with GM
28 May 2009
The US government will take a hands-off approach with a restructured General Motors, even if it becomes a majority shareholder.
If GM is forced into bankruptcy protection, the US government could end up with more than 70 per cent of GM, courtesy of almost $20 billion (£12.5 billion) of government loans extended to the US car giant.
The US government will, as far as possible, not get involved with the day-to-day operations of GM, however.
A government source told Automotive News: “We are reluctant, somewhat involuntary shareholders in this situation. We want to be shareholders for as short a period of time and almost in as inactive a way as we can responsibly be.”
Matt Rigby
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