Business

No more ‘Gov’t. Motors’

The US Treasury plans to sell its stake in General Motors over the coming year, all but assuring a multibillion-dollar loss in a move that will end the automaker’s “Government Motors” era.

Treasury’s plan — a two-step process that includes a $5.5 billion stock sale to GM — is part of a broader push to wind down the controversial financial bailout under the Troubled Asset Relief (TARP) program.

The planned GM sale will raise the proceeds that Treasury has recovered to $28.6 billion of the $50 billion bailout GM originally received.

With $20.9 billion left from the original bailout, the government would have to sell its remaining shares at an average price of $69.72 to break even.

GM shares closed yesterday at $27.18, up 6.6 percent, or $1.69.