DETROIT (AP) — Shares of General Motors Co. hit theirhighest level Monday since returning to
the public stock markets threeyears ago as investors anticipated the U.S. government selling
itsremaining stake in the company.THE SPARK: Late last month thegovernment said it expected to unload
the last of its General Motorsstock by the end of the year. At the time, the government owned
31.1million shares, or less than 2 percent of the company.Mark Reuss,GM’s North American president, told
reporters Monday in Warren, Mich.,that he expects GM’s sales to rise once the government exits,
especiallyamong pickup truck buyers.The government received 912 million GMshares, or 60.8 percent of the
company, in exchange for a $49.5 billionbailout during the financial crisis in 2008 and 2009. So far it
hasrecovered $38.4 billion of the money, but it’s likely to fall about $10billion short of getting all
of its cash back.The company now issitting on $26.8 billion in cash and is considering restoration of
adividend. It hasn’t paid U.S. federal income taxes since leavingbankruptcy due to write-offs from
accumulated net losses.GM hassaid repeatedly that some potential customers have stayed away from
itsbrands because they object to the government intervening in a privatecompany’s finances. Because of
the bailout, the company has been giventhe derisive nickname "Government Motors."But the
Center forAutomotive Research, an Ann Arbor, Mich., think tank, issued a report onMonday saying that if
the government hadn’t intervened and GM went outof business, nearly 1.9 million jobs would have been
lost in 2009 and2011. Federal and state governments also would have lost $39.4 billionin tax revenue and
payments made for unemployment benefits and foodstamps, the study said.GM went through bankruptcy
protection in2009 and was cleansed of most of its huge debt, while stockholders losttheir investments.
Since leaving bankruptcy, GM has been profitable for15 straight quarters, racking up almost $20 billion
in net income onstrong new products and rising sales in North America and China. It alsohas invested
$8.8 billion in U.S. facilities and has added about 3,000workers, bringing U.S. employment to 80,000.The
company now issitting on $26.8 billion in cash and is considering restoration of adividend. It hasn’t
paid U.S. federal income taxes since leavingbankruptcy due to write-offs from accumulated net losses in
the yearsbefore its financial troubles.SHARE ACTION: GM stock hit $41.16early in the afternoon, the
highest level since it returned to themarkets with a November 2010 initial public offering. Sales volume
byearly afternoon was approaching the normal volume for an entire day ofjust under 20.5 billion shares.
GM shares have risen nearly 43 percentthis year.Copyright 2013 The Associated Press. All rightsreserved.
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