Buzzword: Government Motors

Government Motors. Increasingly, that’s what the initials GM stand for, as the U.S. federal government plans to give the company $60 billion in return for a 60 percent ownership stake.

The governments of Canada and its province of Ontario will contribute $9.5 billion for a combined stake of 12 percent of the new company. That leaves almost 3/4 of the company owned by a government entity. The U.S. government’s $60 billion stake is a little more than half of GM’s total outstanding debt, according to Yahoo.

A White House briefing says the government doesn’t plan to run make day-to-day decisions in the company, though it will appoint directors.

The government says it does not plan to retain ownership in GM, but will divest its stake “as soon as practicable.” Still, that could take years.

So if you’ve ever wondered what type of car the government might build you, this may be your opportunity to find out. Rest assured, whoever owns GM, Consumer Reports will continue to test the company’s cars, and give you our independent, unbiased opinion.

To get answers to the most common questions and concerns about GM’s bankruptcy, visit our Auto Crisis hub .

—Eric Evarts

Comments

[brokejumper]

We have seen what happens over-compensated executives who are only interested in short term profits run a car company - and our banks - so why not have some public accountability?