The last few years have been fraught with peril for General Motors. Dismal sales and company debt led to bankruptcy filing and getting bailout loans from the government. The government mandated they take control of the majority of shares while the company was in conservatorship. The short time GM was in bankruptcy was not ill spent. Recently, it was announced that CEO Ed Whitacre, Jr. would be retiring, and also the General Motors is days away from an Initial Public Offering.
The CEO of GM Ed Whitacre to say goodbye
General Motors Chief Executive Officer and Chairman of the board Ed Whitacre Jr. is going to retire, as outlined by the New York Times. He had formerly been the Chairman of AT and 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 planned to retire once General Motors was back in fighting shape all along, and had said so. It would appear that is the case.
GM is back to profitability
Last year, General Motors filed for bankruptcy and turned the majority of shares to the American and Canadian governments, and has seen its second quarter of profits in a row. According to USA Today, GM has just posted a profit of $ 1.3 billion. The business wasn’t able to meet its debt obligations this time in 2009. GM posted a profit last quarter, as outlined by CNN Money, of $ 865 million. Things are looking up for the global car 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 buy back the 60 percent of shares the government holds, General Motors may 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 business at its highest ever stock price.
Further reading on this topic
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/
