WASHINGTON — Today, as part of its continuing efforts to wind down its investments in the Troubled Asset Relief Program (TARP), the U.S. Department of the Treasury announced its intent to fully exit its investment in General Motors (GM) within the next 12 to 15 months.

The Treasury currently holds 500.1 million shares of GM common stock. The plan is to have GM purchase 200 million shares of GM common stock at $27.50 per share. This transaction is expected to close by the end of the year.

The treasury also intends to sell its other remaining 300.1 million shares through various means in an orderly fashion within the next 12 to 15 months, subject to market conditions. It should begin its disposition of those shares as soon as next month pursuant to a pre-arranged written trading plan. The manner, amount, and timing of the sales under the plan will be dependent upon a number of factors.

Earlier this week, the Treasury announced that it expected to make significant additional progress winding down the Troubled Asset Relief Program in 2013. Last week, the department sold its final shares of AIG common stock. Through repayments and other income, the Treasury has recovered more than 90 percent ($381 billion) of the $418 billion in funds disbursed for TARP.

“The auto industry rescue helped save more than a million jobs during a severe economic crisis, but TARP was always meant to be a temporary, emergency program. The government should not be in the business of owning stakes in private companies for an indefinite period of time,” said Assistant Secretary for Financial Stability Timothy G. Massad. “Moving to exit our investment in GM within the next 12 to 15 months is consistent with our dual goals of winding down TARP as soon as practicable and protecting taxpayer interests.”

In 2008 and 2009, Treasury invested a total of $49.5 billion to help stabilize and restructure GM — as part of a broader rescue of the American automotive industry during a severe economic crisis. Including GM’s purchase of common stock from the Treasury announced today, Treasury has recovered more than $28.7 billion of its investment in GM through repayments, sales of stock, dividends, interest, and other income.