President Obama holding to stake in General Motors… for now 0
Is Mr Obama preventing an embarrassing loss from being revealed?
He has claimed that Barack Obama is holding on to the Government share in General Motors in order to ensure that they do not make a huge loss before the upcoming election. It is estimated that if the Government were to sell their 26 per cent share they could lose $16 billion. They originally purchased the shares for $49.5 billion.
A different take
Mr Romney himself has claimed that is he was to come into power himself, he will take a different stance and sell the stake immediately.
Rules could reviewed
The American automotive industry is bracing itself for a ruling that will ensure that their fuel efficiency is improved by double by the year 2025. Mr Romney has claimed that he will review these rules in order to discuss a potential change.
2 years and 11 months…
The U.S Government currently holds a 26 per cent stake in General Motors. This was purchased during the bailout of 2008, where the worldwide economy started to hit recession leaving the automotive industry severely hit. The Government has now had that share for a total of 2 years and 11 months.
No reason to hold onto the shares
Mr Romney released a statement asking why the Government has continued to hold onto their share of General Motors. He said “There is no reason for the government to continue to hold. The president is delaying the sale of the shares to try and avoid the story that the taxpayer took another loss. I would get the company independent from government and run for the interests of the consumer and the enterprise and its workers not for the political considerations of government officials.”
Don’t listen to Mitt Romney
However Mr Obama’s camp has hit back at Mr Romney’s claims. Matt McGrath said “The last time Gov. Romney weighed in on the future of the auto industry, it was to suggest that we let Detroit go bankrupt, a betrayal no Michigander is likely soon to forget. As someone who was dead wrong about the industry’s present, Mitt Romney is the last person who should be offering advice about its future.”