That's why our government
will be making a significant additional investment of about $30 billion
in GM -- an investment that will entitle American taxpayers to
ownership of about 60 percent of the new GM.
Now, let me talk about
this. I recognize that this may give some Americans pause. So let me
explain as clearly as possible why we are making this investment. We
inherited a financial crisis unlike any that we've seen in our time.
This crisis crippled private capital markets and forced us to take
steps in our financial system -- and with our auto companies -- that we
would not have otherwise even considered. These steps have put our
government in the unwelcome position of owning large stakes in private
companies for the simple and compelling reason that their survival and
the success of our overall economy depend on it.
Understand we're making
these investments not because I want to spend the American people's tax
dollars, but because I want to protect them. Instead of taking so much
stock in GM, we could have simply offered the company more loans. But
for years, GM has been buried under an unsustainable mountain of debt.
And piling an irresponsibly large debt on top of the new GM would mean
simply repeating the mistakes of the past. So we are acting as
reluctant shareholders -- because that is the only way to help GM
succeed.
What we are not doing --
what I have no interest in doing -- is running GM. GM will be run by a
private board of directors and management team with a track record in
American manufacturing that reflects a commitment to innovation and
quality. They -- and not the government -- will call the shots and
make the decisions about how to turn this company around. The federal
government will refrain from exercising its rights as a shareholder in
all but the most fundamental corporate decisions. When a difficult
decision has to be made on matters like where to open a new plant or
what type of new car to make, the new GM, not the United States
government, will make that decision.
In short, our goal is to get
GM back on its feet, take a hands-off approach, and get out quickly.
