Treasury Gets $11.7B from GM IPO
WASHINGTON - The Treasury Department got an $11.7 billion wire transfer today — its proceeds from the sale of 358.5 million shares of stock in General Motors Co.
The government's sale of about 40 percent of its 61 percent stake in General Motors Co., at $33 a share, generated $11.74 billion — and, as is standard practice, the sale closed today, three business days after the initial public offering of stock, The Detroit News reported.
The IPO receipts means the government has now recovered $252 billion from the Trouble Asset Relief Program, the $700 billion fund used to bailout automakers, insurance companies and banks.
"Our temporary assistance for the U.S. auto industry saved more than one million jobs across the industrial heartland of America and, like the overall TARP program, is on track to cost far less than anyone had first anticipated," said Tim Massad, the Treasury's acting assistant secretary for financial stability. "General Motors' successful initial public offering is another important milestone in our efforts to recover TARP funds on behalf of the American taxpayer."
GM's IPO underwriters still have the option to sell another 15 percent of the shares, or another 53.8 million shares held by the government. They have until Dec. 18 to do so.
If the underwriters exercise that option in full, Treasury would receive further net proceeds of $1.8 billion.
Ron Bloom, the Treasury's top auto adviser, said in an interview Friday that the government wouldn't encourage or discourage the underwriters from exercising their option to sell the additional shares.
In October, Treasury announced that it accepted an offer by GM to repurchase $2.1 billion of preferred stock issued under TARP; a transaction is expected to occur in December. GM will pay $2.14 billion for the preferred stock.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →