GM just filed papers today to begin it’s IPO or intial public offering, which would allow the Federal Government to sell down it’s ownership of the company. As of this post GM has not announced how many shares would be offered, nor the asking price. Industry experts liken the IPO to VISA’s in 2008, which netted the company around $19 billion. But will consumers or investors bite the bait?
Consumers are still a bit shy when it comes to buying GM products, at least people I speak with. Everyone understands, yet not everyone likes the idea of bailing out GM employees or the company itself. After all, who is going to come bail out my job if it were to fall on hard times? No one. My question is, have people forgot about this?
No doubt there will be a number of investors looking to jump on the opportunity to own one of the largest car makers in the world. Yet, if GM gets too greedy with the asking price or number of shares being offered, it may just back fire. Analysts close to GM feel that hope that the IPO will generate somewhere between $10 to $15 billion. Next, the companies history will be taken into consideration, which would typically make any investor balk.
Consider this, GM has lost $88 billion in the 4 years leading up to their bankruptcy!
The $10 billion generated from the IPO will just be a drop in the bucket and hemorrhaging money like that will just make it a poor buy. Obviously GM has been making some large steps in cutting costs, eliminating factories and jobs, but I still just don’t feel they have their feet firmly planted. Perhaps another year from now would be a better time for the IPO? Meanwhile, how’s that Ford stock doing?
It’s a recall and it must be reported, but the latest recall from GM is hardly as serious as the recalls made by Toyota so far in 2010. The Hummer H3 has been recalled due to a faulty fake hood vent, which can become lose and actually release during normal driving. All Hummer H3’s made from 2006-2010 are affected and should be brought into car lots for a fix.
There is a simple fix for the Hummer H3 recall, which involves actually gluing the fake hood vent down. And yet a better idea, how about not putting fake hood vents on vehicles anyway, make it real or leave it out. Pretty silly recall involving almost 200,000 Hummer H3, which is the smaller version of the Hummer models.
GM has been plastering your TV with a new commercial claiming to have repaid back it’s loan from the government and you the tax payers. However, that’s not entirely accurate, and there are those in Washington and in the industry that are now calling for blood.
The simplified version is that GM did pay back the original loan to the government for bailing them out, however they used tax payer money to do so with TARP funds. Furthermore the ‘repaid government loan’ commercial is misleading because the Federal Reserve still owns 61% of General Motors, perhaps that’s what he meant by ‘new’ GM.
The government repay commercial by GM is glossy and attempts to show off how responsible GM has become. It’d kind of true and it’s kind of a lie, border line committing fraud with tax payer money. View the GM TV ad below and you be the judge.
The Heads Up Display (HUD) has been almost as popular as the flying car, in future depictions in popular media. We’ve seen some positive advancements in military applications and some low level tech involving displaying basic information like speed on a Nissan window. But now GM is hoping to make the giant leap to display technology that allows the driver to view pertinent information, without having to take their eyes off the windshield.
What makes GM’s special is that the display technology will display whats going on ahead of the driver, not necessarily just information directly related to the car itself. Instead of seeing RPMs jumping across the windshield, think driving in foggy conditions where the edges of roads are etched with light across the windshield. It sounds to me to be the closest thing to assisted night vision as possible. A possible life saver when road conditions get bad quickly and you can’t see 5 ft in front of you.
The lead for GM’s research and development team points out that the technology will also be able to identify animals or items in the road. It would be capable of giving advance warning, displayed directly onto the windshield, so distractions coming from the console or sound alarms won’t be necessary.
Unfortunately this brave new technology is not even completed enough to be tested on an actual vehicle. Right now it only exists in the GM laboratory and will likely remain there for quite some time. However, to me, it looks like it might be the next GPS system and popular enough that everyone will want it on their car.
There are lots of conflicting information about he upcoming Chevy Volt, that just doesn’t seem to add up. Past news has presented the Volt in a light that makes the electric car look like GM’s savior. But what can an expensive vehicle focused on a small niche market do for a failing monster like GM?
Furthermore GM has announced that the Volt will get 230 miles per gallon, which is true, if you don’t understand basic math. This issue has been discussed at length with GM’s 100 mpg Hummer as well, electric cars and hybrids have limitations, which aren’t taken into consideration when figuring gas mileage.
All of this aside, from a strictly economic perspective, do you know how much gas I can buy for $40,000? At a price of $3 per gallon I can purchase over 13,000 gallons. Assuming I drive an average of 20,000 miles per year in a vehicle that gets an abysmal 16 mpg, I can purchase 10 YEARS worth of gasoline. So, with a cost analyst of buying a Volt, the only people interested will be the rich hippies.
As far as I’m concerned, we still don’t have a viable option to the traditional internal combustion engine. Count me out until the next big thing hits.