General Motors Takes Steps to Sell Massive Amount of Stock

VOA News
August 18, 2010 at 4:55 pm

General Motors took a key step Wednesday toward a stock sale that may raise billions of dollars.

The goal is to help the firm repay the $50 billion in emergency government loans needed to prop up the company when it lapsed into bankruptcy during the financial crisis.

GM is the largest U.S.-based automaker, and after reorganizing and shedding unprofitable brands and factories, it has just posted two profitable quarters.

The stock sales could begin in October or November.

A GM document says it expects strong growth in emerging markets and is offering high-quality vehicles for sale.

But the firm warns that its profits could be hurt by shrinking demand for vehicles, and may be running out of ways to cut costs.

Some information in this story was provided by AP, AFP, Bloomberg and Reuters.