General Motors has had a rough few years. After successive years of falling sales, GM had to ask for an auto bailout and file for bankruptcy. The government mandated they take control of the majority of shares when the business was in conservatorship. GM did a lot while they were 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.
GM CEO Ed Whitacre to retire
General Motors Chief Executive Officer and Chairman of the board Ed Whitacre Jr. is going to retire, according to the New York Times. He had formerly been the Chairman of AT and T. Daniel Akerson, former executive at Nextel, will take his place. Whitacre will step down as CEO by September and step down as Chairman at 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 makes good on promise to profit
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. According to USA Today, GM has just posted 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. This is a sure sign that things are looking up for the auto manufacturing giant, which had to divest itself of all but four main brands to survive – Buick, Cadillac, GMC and Chevrolet.
GM IPO by the end of month
To repay the Treasury and purchase back the 60 percent of shares the government holds, General Motors can 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. The Initial Public Offering for the new, leaner and meaner General Motors might start the company at its highest ever stock price.
More on this topic accessible at these sites
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/
