The last few years are fraught with peril for General Motors. After successive years of falling sales, GM had to ask for an auto bailout and file for bankruptcy. The company entered conservatorship, and also the government nevertheless holds the majority of shares due to terms of the bailout. GM did a lot when they were in bankruptcy. Ed Whitacre Jr., Chairman and CEO of General Motors, announced he would retire, and an Initial Public Offering of stock for General Motors is predicted within days of his announcement.
CEO of GM Ed Whitacre to hang it up
According to the New York Times, Chairman and Chief Executive Officer of General Motors, Ed Whitacre Jr., is retiring by the end of the year. Before GM hired him, he was the chairman of At and T. He will hand over his duties to former Nextel executive Daniel Akerson. Whitacre will step down as CEO by September and step down as Chairman at the end of the year. Whitacre had prepared on retiring as soon as General Motors had stabilized and was headed in the right direction. It looks like that is precisely what’s happened.
GM goes from pitfalls to profits
After filing for bankruptcy last year and turning over majority ownership to the governments of the United States and Canada, General Motors has posted a profit for the second consecutive quarter. GM has posted, as outlined by USA Today, a profit of $ 1.3 billion. In the second quarter of 2009, GM had missed a huge debt payment. As outlined by CNN Money, GM profited $ 865 million in the first quarter of this year. Things are looking up for the global vehicle giant, after having to divest of all brands except Cadillac, Buick, Chevrolet and GMC.
IPO for GM in the very near future
To repay the Treasury and purchase back the 60 percent of shares the government holds, General Motors could have to hold a public stock offering as they were de-listed off stock exchanges. Chris Liddell, the Chief Financial Officer for GM, hasn’t commented much on the subject. General Motors, in its new lean and mean configuration, may hold an Initial Public Offering at the highest price ever paid for stock in the company.
Additional reading at these websites
NY Times
nytimes.com/2010/08/13/business/13auto.html?_r=1 and src=mv
USA Today
usatoday.com/money/companies/earnings/2010-08-12-gm_N.htm
CNN
money.cnn.com/2010/08/12/news/companies/gm_results/
