The manager of General Motors' employee stock fund has sold off all remaining shares of the troubled auto maker, which is closing plants and slashing costs in a bid to avoid bankruptcy.
General Motors revealed in a regulatory filing late Friday that its employee stock-purchase plan has unloaded all shares of the company in favor of short-term and money market investments. The plan's financial manager, State Street Bank and Trust Co., said it began selling off shares of the Detroit automaker in late March "due to the economic climate and the circumstances surrounding GM's business." GM disclosed the development in a filing with the Securities and Exchange Commission.
State Street said the General Motors Savings Plan now consists entirely of short-term, cash-based investments. By the end of May, the GM Common Stock Fund will be eliminated as an option for company employees, the investment manager said.
The selloff underscores the grim outlook for GM, which plans to shut down more than a dozen plants over the summer to conserve cash, slash costs and align production levels with demand. The company is racing against the federal government's June 1 deadline to squeeze larger concessions from bondholders and the United Auto Workers union.
The cost-cutting efforts are expected to lead to thousands more layoffs and temporary factory closures.