Ralph Nader Tries To Delay GM IPO

November 12th, 2010 - 8:26 pm ICT by GD  

By Ranjan Bhaduri
gmmoraineNov 12, (THAINDIAN NEWS) Ralph Nader well known consumer advocate along with two consumer groups tried desperately to linger the planned IPO of US car manufacturer GM or General Motors. The attempt may not succeed. However, that has not deterred him and the two entities from lashing out at the company based in Detroit. The government of USA is likely to go ahead with its plan to sell one third of 61 percent stake it has in GM. The car maker which applied for Bankruptcy protection after the recession of 2008 is trying to emerge out of the bad times. Ralph Nader came down heavily on the car maker in a recent interview saying “There’s no sense of gratitude that they wouldn’t exist without the government, without the taxpayers.”

He signed a letter written to the US president Barack Obama. It was also signed by Robert Weissman Public Citizen President and Clarence Ditlow the Executive Director of Center for Auto Safety. They are of the opinion that the taxpayers would stand to gain if the government decides to delay the IPO. The treasury decided has remained mum on the topic so far. The consumer advocate groups also hinted that the government should not stop monitoring the functioning of the company as it is the majority shareholder in the company. GM has not reacted to the remarks of these entities.

The chances are slim that the government will get back the $50 billion taken from taxpayer’s money which it gave to GM as bailout as well as bankruptcy financing. The Treasury earlier said that the stake of the government in GM will be reduced with time.

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