The Canadian and Ontario governments provided substantial financial support to General Motors (GM) during the company’s bankruptcy in 2009. The Canadian government contributed approximately $7.2 billion Canadian dollars to the bailout. The Canadian and Ontario governments collectively held about 175 million shares of GM common stock at one point.
Key Facts
- The Canadian and Ontario governments provided financial support to General Motors (GM) during its bankruptcy in 2009.
- The Canadian government contributed approximately $7.2 billion Canadian dollars to the bailout.
- The Canadian and Ontario governments collectively held about 175 million shares of GM common stock at one point.
- The Canadian federal government sold its nearly 73.4 million shares of GM stock in 2024.
- The Canadian government has recovered $6.4 billion Canadian dollars of its support to GM.
- The Canadian and Ontario governments will receive approximately $1.7 billion in debt and preferred stock, and approximately 12% of the equity of the new GM.
- The Canadian government will have the right to select one initial director based on its substantial financial contribution.
Canadian Government’s Financial Recovery
The Canadian federal government sold its nearly 73.4 million shares of GM stock in 2024. The sale resulted in a loss of approximately $800 million Canadian dollars for the Canadian government. However, the Canadian government has recovered $6.4 billion Canadian dollars of its support to GM.
Canadian Government’s Future Involvement in GM
The Canadian and Ontario governments will receive approximately $1.7 billion in debt and preferred stock, and approximately 12% of the equity of the new GM. The Canadian government will have the right to select one initial director based on its substantial financial contribution.
Conclusion
The Canadian government’s financial support to General Motors (GM) during the company’s bankruptcy in 2009 was a significant undertaking. The Canadian government has recovered a portion of its investment, but it has also incurred losses. The Canadian government’s future involvement in GM will be limited to its ownership stake in the company.
References
- Fact Sheet on Obama Administration Auto Restructuring Initiative for General Motors | The White House (https://obamawhitehouse.archives.gov/realitycheck/the-press-office/fact-sheet-obama-administration-auto-restructuring-initiative-general-motors)
- Canada loses $800M Canadian in GM bailout (https://www.detroitnews.com/story/business/autos/general-motors/2015/04/09/25559951/)
- The government auto bailout: $474,000 per GM employee | Fraser Institute (https://www.fraserinstitute.org/article/government-auto-bailout-474000-gm-employee)
FAQs
How much money did the Canadian government give to GM during the 2009 bailout?
The Canadian government contributed approximately $7.2 billion Canadian dollars to the bailout.
How much money has the Canadian government recovered from its investment in GM?
The Canadian government has recovered $6.4 billion Canadian dollars of its support to GM.
How much money did the Canadian government lose on its investment in GM?
The Canadian government lost approximately $800 million Canadian dollars on its investment in GM.
What is the Canadian government’s current stake in GM?
The Canadian government owns approximately 12% of the equity of the new GM.
Does the Canadian government have any say in GM’s operations?
The Canadian government has the right to select one initial director to GM’s board of directors.
When did the Canadian government sell its shares of GM stock?
The Canadian government sold its shares of GM stock in 2024.
Why did the Canadian government sell its shares of GM stock?
The Canadian government sold its shares of GM stock to recover its investment and to limit its involvement in the company.
What is the future of the Canadian government’s relationship with GM?
The Canadian government’s future involvement in GM will be limited to its ownership stake in the company.