Mitt Romney Says He Will Sell US Gov't GM Stock if Elected

US Presidential Candidate Mitt Romney says that he will sell the US government's remaining 26.5% stake in General MotorsFordUnited States of America, 1903 > present92 models
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if he is elected president. Romney also said he would cancel President Obama's plans to double fuel economy standards and leave economy up to automakers. Romney made both statements during an interview with the Detroit News on June 5.

"There is no reason for the government to continue to hold its GM stake," said Romney. 

Romney claims that President Obama is holding to the stock for political reasons to avoid negative press about losing money on the stock. If the US sold its GM stock now, it would lose about $16 billion. 

In 2008 and 2009, the US government paid around $80 billion to take over General Motors and ChryslerChryslerUnited States of America, 1925 > present70 models
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. As of June 2011, Fiat had bought the entire government-owned stake in Chrysler. General Motors issued an initial public offering in November 2010, and its stock is currently trading at $21.60 a share, which is below the IPO price of $33 a share. 

Romney also does not want to strengthen corporate average fuel economy (CAFE) standards as President Obama has attempted to do. President Obama proposed increasing CAFE standards to 54.4mpg by 2025. The current standard is 27.3mpg. 

"I would work with the manufacturers to find ways to encourage fuel economy on the part of the consumer. But trying to have the manufacturer push the product on the consumer -- that the consumer doesn't want -- is not the right approach," said Romney.

Romney's father was George Romney was CEO of American Motors Corporation, governor of Michigan, and ran for president in 1968. 

Source: Automotive News