Government's GM help comes with some strings

0 Comments | USA TODAY, June, 2009 | by Sharon Silke Carty

DETROIT -- Facing increasing skepticism over the government's involvement in General Motors, CEO Fritz Henderson admitted Wednesday the automaker is dealing with the government on a daily basis, but says that will likely ease once the company emerges from bankruptcy court protection.

The government, which is investing $30 billion in GM while it wends its way through bankruptcy court, will own about 60% of the "new GM," to be created through the sale of the company's good assets to a new holding company. That could happen as soon as June 30. The government has said that after that happens and it becomes a shareholder, it will only intervene at GM in exceptional cases.

But until then, Henderson says, the government's level of involvement will be quite intense. ...