Edward Whitacre Jr., former GM CEO, urged the Obama administration to hurry an sell the remaining 26.5% in the automaker.
“The government has been an active participant in GM’s management for more than three years, and that’s long enough. It’s time for Treasury to step out of the way so that GM can fully focus on what it does best,” said Edward Whitacre Jr.
He also said that he proposed a plan that would have made the government exit GM in 2010, offering to write the government a check for billions to make up losses on the $49.5 billion government bailout from 2009. But in May officials announced that the Treasury will not sell any more shares until November, after the presidential election, as the government could incur a massive loss in the GM bailout and make out of this a political issue.
Although analysts say that the “Government Motors” label is affecting the company’s stock price and keeps customers away, GM spokesman Greg Martin believes that it’s up to the Treasury to decide and when and how much it will sell and that the automaker will do just fine if it keeps building exceptional cars and offer the best retail experience.
“The president is delaying the sale of the shares to try and avoid the story that the taxpayer took another loss,” said Republican Mitt Romney adding that he will quickly sell GM’s remaining stock.