General Motors has had a rough 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 also the terms of the bailout integrated the government held a majority of shares. The short time GM was in bankruptcy was not ill spent. 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
As outlined by the New York Times, Chairman and Chief Executive Officer of General Motors, Ed Whitacre Jr., is retiring by the end of the year. 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 prepared to retire once General Motors was back in fighting shape all along, and had said so. It would appear that is the case.
GM makes good on promise to profit
General Motors has realized a second quarter of consecutive profits after filing for bankruptcy and turning over the majority of their shares to the American and Canadian governments. GM made a profit of $ 1.3 billion for the second quarter, according to USA Today. The second quarter of 2009 saw GM unable to pay their debts. As outlined by CNN Money, GM profited $ 865 million in the first quarter of this year. After jettisoning all brands except Chevrolet, Cadillac, GMC and Buick, General Motors is turning things around.
GM IPO expected soon
General Motors is no longer listed on stock exchanges because of its bankruptcy, and could have to hold a public offering to purchase back the 60 percent of shares the government holds and pay down the Treasury. There is not 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.
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/
