Obama to sell auto bailout good news in Michigan

On Friday, Obama will visit GM's Hamtramck plant, which is planning to assemble the Chevrolet Volt rechargeable electric car. The plant is one of nine the automaker will keep open during the usual two-week summer shutdown to boost production of popular models.

In nearby Detroit, Obama will tour Chrysler's Jefferson North plant, which recently added a second shift of production, adding about 1,100 jobs. Next week, the president will visit the Chicago plant where Ford builds the Taurus sedan and plans to assemble a new Explorer sport utility vehicle.

GM has repaid $6.7 billion that the government considered loans, with the remaining $43.3 billion converted into a 61 percent stake in the company. GM is expected to conduct an initial public offering of shares in the company later this year, a move that could help the government recoup some of its investment.

United Auto Workers President Bob King said in a statement Thursday that GM would file paperwork in mid-August to start the process of selling stock to the public.

Chrysler received about $15 billion in government help and was placed under control of Italian automaker Fiat as part of its bankruptcy. The company has repaid about half of the $4 billion loan portion of its aid and is considering a public stock offering sometime in 2011.

Ron Bloom, the administration's senior counselor for manufacturing policy, said it was unclear how long the government would hold ownership stakes in the companies. "We don't like having this investment, but we're not going to sell it at a fire sale," he said.

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