Governments to Reduce Stakes in General Motors

The U.S., the Ontario Provincial and the Canadian federal governments plan to reduce their levels of ownership in General Motors through stock sales starting on November 18.

The sales will reduce Canada’s stake in GM to 9.6 per cent and the U.S. interest to 43.2 per cent which means it will no longer be in majority control.

There is the possibility that the U.S. and Canadian governments could sell another 44 million shares in the offering which would shave the American interest to 40.6 per cent and Canada’s stake to 9.3 per cent.

Analysts contend that the governments will likely suffer losses as they unload the stakes over several years.

It's good that the U.S. government is whittling down its involvement in the automobile business. Unfortunately, it appears that it will be a slow, years-long process.