General Motors has been on a roller coaster the last few years. The company is making good strides though. Two different governments had to loan General Motors billions, and now the company is posting profits again. The underperformers of General Motors brands were let go while the company was under bankruptcy protection. GM is getting its fourth new chief executive in as numerous years. Despite the company having started a return to health, it still owes a hefty sum to the federal government. General Motors leadership doesn’t think the loans will all be paid off within the upcoming Initial Public Offering. Only time will tell.
It might be many years until General Motors is paid up
During the summer, GM announced that it was on the cusp of filing for a first public offering of stock. It was more than just idle chatter. The business did file for an IPO. The government is still the majority shareholder. About 61 percent of all GM stock is held by the government. To pay the government back, an IPO will contain selling the government’s shares to investors. Nevertheless, according to the NY Times, General Motors isn’t all that sure it will fully repay the loans. There is a slight catch.
General Motors requires a reputation first
In order for the business to prove that a couple of solid quarters aren’t just a fluke, there has to be a reputation of profitability. The new CEO of GM, Daniel Akerson, thinks it can be a few years until GM can repay the Treasury safely. He was completely open about it at a recent press briefing. Akerson lately held a press briefing about the upcoming IPO. That was exactly what he told a room full of reporters.
A long road ahead
General Motors has pared itself down to four core brands, being Buick, Cadillac, Chevrolet and GMC. The change in leadership though, was exactly what Ed Whitacre had said all along.
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NY Times
nytimes.com/2010/09/17/business/17auto.html?ref=automobiles
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