Gov't ownership means stocks...and not a controlling stake. I don't like it, either...but they see it as taxpayer 'protection'. They won't be able to force GM to do anything via the stocks...they can do enough through laws...
. Besides, once the loans are used up and expired, the idea is to sell off those stocks and make some $$ off of it. They don't want to own the auto Industry, this is a temperary thing.
I believe they did something similar with Chrysler in the 70s (80s?)