The last few years have been fraught with peril for General Motors. Consecutive years of falling sales resulted in GM filing for bankruptcy and asking for bailout funds from the government. The company entered conservatorship, and the government still holds the majority of shares because of terms of the bailout. GM did a lot while it was in bankruptcy. Chairman and CEO Ed Whitacre, Jr. announced he would soon retire, and an Initial Public Offering of General Motors stock is reportedly only days away.
Ed Whitacre, GM CEO, is stepping down
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&T. Former Nextel executive Daniel Akerson will be his replacement. Whitacre will step down in September as CEO, and will transfer duties as Chairman to his replacement by the end of the year. Whitacre had stated previously he would retire once General Motors was back on track. It looks like that is precisely what’s happened.
GM back to profits
Last year, General Motors filed for bankruptcy and turned the majority of shares to the American and Canadian governments, and it has seen its second quarter of profits in a row. GM has posted, according to USA Today, a profit of $1.3 billion. In the second quarter of2009, GM was unable to pay its debts. According to CNN Money, GM profited $865 million in the first quarter of this year. Things are looking up for the global car giant, after having to divest of all brands except Cadillac, Buick, Chevrolet and GMC.
GM IPO shortly to follow
To repay the Treasury and buy back the 60 percent of shares the government holds, General Motors will have to hold a public stock offering as it was de-listed off stock exchanges. Chris Liddell, the Chief Financial Officer for GM, hasn’t commented much on the subject. A leaner and meaner General Motors might open its Initial Public Offering at a record price for GM stock.
NY Times: http://nytimes.com/2010/08/13/business/13auto.html?_r=1&src=mv
USA Today: http://usatoday.com/money/companies/earnings/2010-08-12-gm_N.htm
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