Why General Motors Company (GM) Hasn’t Repaid Taxpayers

That’s not likely to be enough to make things whole.

So where will that leave taxpayers – and GM?
At current prices, those shares are worth a little less than $6 billion. Unless General Motors Company (NYSE:GM)’s stock goes way up, and soon, Treasury is going to be left with a shortfall after it sells the last of its stock. That shortfall is likely to be in the neighborhood of $10 billion.

Now, it’s possible to argue that the U.S. government has received more than $10 billion in value from its decision to save General Motors. That decision kept the U.S. automotive supply chain alive in a time of deep crisis, which probably indirectly saved Ford Motor Company (NYSE:F) as well — along with thousands and thousands of American jobs. The recession would have been a lot worse had the U.S. auto industry collapsed.

But it’s also possible to argue that General Motors Company (NYSE:GM), which is now a solidly profitable global company with more than $20 billion in cash on hand, might be obligated to make up some or all of that $10 billion shortfall — morally, if not legally.

The article Why GM Hasn’t Repaid Taxpayers originally appeared on Fool.com and is written by John Rosevear.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors and owns shares of Ford Motor Company (NYSE:F).

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