In a press release yesterday, General Motors chairman and CEO Daniel Akerson announced that the United States Treasury has sold off the last of its shares in the Detroit-based automotive giant – recovering $39 billion US of the total $49,5 billion investment in the company.
The U.S. government bailout of GM (and Chrysler), after it filed for Chapter 11 bankruptcy following the economic downturn of 2008, certainly helped the firm turn a crucial corner in its 100 year existence – but it’s come at the expense of the US taxpayers, with a total loss in excess of $10 billion.
The deficit seems small however, in comparison to the claim by researchers Sean McAlinden and Debra Maranger Menk that the US Government’s bailout of GM in June 2009 saved 1,2 million jobs in that year and preserved $39,4 billion US in personal and social insurance tax collections in 2009 and 2010.
“We will always be grateful for the second chance extended to us and we are doing our best to make the most of it,” Akerson said.
“Continued investments, innovation, and job creation are just some of the ‘returns’ of a healthy GM and domestic auto industry. Our work continues uninterrupted, and we will keep our sights squarely on our customers and transforming the way we do business.”