General Motors had a tumultuous last few years. Dismal sales and business debt led to bankruptcy filing and getting bailout loans from the government. GM was placed under government conservatorship, and the terms of the bailout involved the government held a majority of shares. 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 from an Initial Public Offering.
The CEO of GM Ed Whitacre to say goodbye
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 stated previously he would retire once General Motors was back on track. It would appear that is the case.
GM makes good on promise to profit
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. GM has posted, as outlined by USA Today, a profit of $ 1.3 billion. The second quarter of 2009 saw GM unable to pay their debts. First quarter of 2010 saw profits of $ 865 million, according to CNN Money. 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 purchase back the 60 percent of shares the government holds, General Motors will have to hold a public stock offering as they were de-listed off stock exchanges. There isn’t really a date committed to by Chris Liddell, GM’s Chief Financial Officer. A leaner and meaner General Motors might open its Initial Public Offering at a record price for GM stock.
More on this topic available 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/
