US government will not get involved in the daily running of a restructured GM

The US government will take a hands-off approach with a restructured General Motors, even if it becomes a majority shareholder.

If GM is forced into bankruptcy protection, the US government could end up with more than 70 per cent of GM, courtesy of almost $20 billion (£12.5 billion) of government loans extended to the US car giant.

The US government will, as far as possible, not get involved with the day-to-day operations of GM, however.

A government source told Automotive News: “We are reluctant, somewhat involuntary shareholders in this situation. We want to be shareholders for as short a period of time and almost in as inactive a way as we can responsibly be.”

Matt Rigby

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