Earlier yesterday morning, news broke that General Motors intends to repurchase 200 million shares, or 40 percent, of its common stock held by the U.S. Department of Treasury for $5.5 billion — a move that sent GM’s stock up $1.69 in one day. The news coincided with the announcement that the United States Treasury plans to fully divest its holdings of GM stock within 12 to 15 months, based on market conditions. However, the same cannot be said for the government of Canada, which currently holds a 9 percent stake in GM. At least, not officially.
According to the latest report from Automotive News, Canadian Finance Minister Jim Flaherty stated that the Canadian government has yet to set a time table to divest its stock in General Motors.
A brief recap: in 2009, Canada provided C$10.8 billion ($10.89 billion USD) to keep GM afloat; the funds got the country a 9 percent stake in GM, or 140 million common shares, and 16.1 million preferred shares. At the end of September, the stake was worth only C$3.5 billion. To say the least, GM’s shares will need to appreciate for Canada to see any return on its investment. And we don’t think losing Chevrolet Camaro production to Lansing Grand River is what Canada had in mind.
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As you can imagine Manoli, we are very frustrated here at GM oshawa for losing the camaro.
We take pride in building the world-class vehicles that our plants produce and to see GM Canada shrink like this before my eyes after Billions of dollars have been 'injected' into this corporation from all levels of government is simply appalling.
I hope the provincial and Federal governments have the will-power to make GM replace that product and fully use our remaining facility..
Canada should sell their shares when the time is right and not when GM wants them to... Maybe it's the only leverage we have left to keep our plant in business.
The Camaro will not be the only model that will need replacing by 2015. By then, the Equinox, Terrain, Regal will probably all be replaced by the next-generation models or something new entirely. Meaning the XTS and new Impala will be the only current models still around by then. Just something to think about...
sounds like corporate greed sinking its ugly teeth again, anything for the all mighty dollar ! how about watching out for your devoted workers, NOT !