Tag Archives: general motors

IPO For General Motors, You Buying?

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?

General Motors Closes Plant Due To Strike

In another sad display of cooperation, that is the domestic auto manufacturer, GM will be stopping production at it’s Wentzville, MO plant. The strike in question is between the UAW and American Axle and Manufacturing, Inc. Sadly this is the 11th plant to halt production due to this specific strike.

The Wentzville plant produces the Chevrolet Express and GMC Savana vans, but not right now. Because of the strike over 1,800 hourly employees and more than 170 salaried employees will be without work. Overall the strike has adversely effected more than 21,000  General Motor employees.

No contract talks have taken place since Feb. 25 when the two sides were reportedly far apart on issues such as buyouts and wages.

More Info on the Strike