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U.S. to slowly divest itself of GM share

by Andrew Ganz

The United States government has said over and over that it intends to exit the auto industry by selling off its 61 percent stake in General Motors as soon as feasible, but news comes today that the government intends to sell the automaker in stages rather than all at once.

Speaking at a hearing in Detroit, U.S. Treasury Department senior adviser - and newly-appointed "car czar" - Ron Bloom said that it is in GM's best interest to be sold off in parcels over a period of time rather than all at once. He said that he feared that a short period sale of the majority share would push the stock price down and limit the taxpayers' return on their investment in GM.

"Success will be measured by whether taxpayers get their money back," Bloom told the Congressional Oversight Panel hearing at Wayne State University in Detroit.