Nov. 3--WASHINGTON -- While General Motors Co. is aiming for an initial public offering next year, the Government Accountability Office cautioned Monday that 2010 might be too soon to execute such a stock offering.

The GAO report said the Obama administration should establish more detailed guidelines for how it plans to sell its stakes in GM and Chrysler and consider more options, such as private sales.

"Two of the experts we spoke with said GM might not be ready for a successful IPO by 2010, because it may be too early for the company to have demonstrated sufficient progress to attract investor interest, and two other experts noted that 2010 would be the earliest possible time for an IPO," the report said.

The agency said that not enough time has passed for the impact of structural changes at GM and Chrysler to show results, especially with low sales in the troubled economic environment.

"These and other challenges are likely to delay the companies' recovery beyond what it would be under more favorable economic circumstances," the report said.

GM said the final decision on launching an IPO rests with the company's owners, including the U.S. government.

"The timing of an initial public offering (IPO) will be largely dependent on conditions in the equity markets, the state of the recovering auto industry and our own business results," Renee Rashid-Merem, a GM spokeswoman, said in a statement. "We would like to see the company in a position to launch a public offering as soon as practical."

Meanwhile, the GAO also disclosed that the Obama administration required GM and Chrysler to meet certain levels of vehicle production in the United States.

Under the terms of the loans to keep the companies operating through bankruptcy, the GAO said GM agreed to "use its commercially reasonable best efforts" to keep its U.S. manufacturing within 90% of the level in its business plans.

The targets for Chrysler were more specific: It must either make 40% of U.S. sales in the United States or keep its U.S. production above 90% of its 2008 total.

The only previously known manufacturing limits set by Obama's auto task force required Fiat SpA to meet certain production targets in Chrysler plants in order to increase its 20% stake.

The GAO estimated that the government had provided $81.1 billion to keep the U.S. auto industry going, including aid to GM, Chrysler, GMAC, Chrysler Financial and suppliers.

In order for the government to recoup the $58.3 billion lent to GM in return for a 60.8% stake, the automaker would have to reach a market value of $66.9 billion, the GAO said.

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