The U.S. Treasury is worried about the political reaction if foreign investors such as China's SAIC Motor Corp. are allowed to acquire a substantial stake in GM, reports the Wall Street Journal.
The Chinese auto maker has expressed interest in participating in GM's initial public offering which will launch after the Nov. 2 midterm elections. The company has built cars with GM in China since the 1980s. The partnership with SAIC has contributed to GM's success in China.
"Critics will publicly blast the Obama administration for using taxpayer money to fund foreign ownership in an American icon," Morningstar automotive equities analyst David Whiston told the Journal.
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