REPORT: General Motor still on track for 2010 IPO
While defending the government bailout of America's auto industry, Herb Allison (above), the Treasury Department's assistant secretary for financial stability, said that a General Motors initial public offering is still a go for next year. While Allison still believes it was essential to safeguard the security of our financial system, he claims that the deal to bail out the auto industry has always been seen as a temporary situation:
"Our investments in the automobile industry and other companies that have received exceptional assistance are limited and temporary. Chrysler Financial has already repaid its assistance, and an initial public offering for GM is expected next year," Allison said.According to The Detroit News, the Treasury is getting things in place to begin selling off their 60.8% equity stake in GM. It will take several years to divest themselves of GM stock, but the IPO should happen sometime in 2010. An initial public offering for Chrysler is still a ways off.
[Source: The Detroit News | Image: Mandel Ngan/AFP/Getty Images]
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Reader Comments (Page 1 of 1)
Epsilon-Not 4:33PM (9/28/2009)
Good to hear- I'm not a raging anti-government type, but even so I'd prefer the government get out as soon as they possibly can.
As for Chrysler, will there be an IPO, or just a sale of the remaining stake to Fiat? (I thought there were some sort of provisions for that if sales met a certain target?)
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Sea Urchin 4:48PM (9/28/2009)
UAW will be a great stock symbol for GM.
I kid, I Kid.
MemphisNET 4:51PM (9/28/2009)
Fiat can only take a max of 35% of the company, and only as certain goals/repayments are met. I'm sure once the gov. is 100% repaid, Fiat could do whatever they wanted with the remaining stake.
geo.stewart 5:02PM (9/28/2009)
big difference between GM going IPO and "chrysler financial" paying back.
chrysler financial was cerebrus and that loan was under the TARP with all of the bailout for the banking side. had nothign to do with the manufacturing arms of gm or chrysler.
ridiculous for herbie to even mention it in the same breath
BrianFL 5:10PM (9/28/2009)
SEA PENIS!! Your back?!
Soccer Mom 4:49PM (9/28/2009)
An IPO of what was a public company less than a year ago.
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letstakeawalk 4:54PM (9/28/2009)
Wouldn't it be nice if they allowed all the bagholders left holding worthless stock have first shot at it during the IPO? It might give some of their true-believer investors a chance to get back what they lost...
Rich 5:13PM (9/28/2009)
Yeah that's what happens with bankruptcy.
What's unusual here is that there's something worthwhile to sell so soon after reorganization.
alexander 4:50PM (9/28/2009)
and the governement will get back all the money spent for gm? :)
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Justin 5:15PM (9/28/2009)
UAW would be a great symbol for the stock.
I can't wait till the next wave of destruction of the GM stock or the American car industry.
One thing I do love about the union is that they do also indirectly slit their own throat while hurting the free market.
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Sea Urchin 6:02PM (9/28/2009)
Look, i think unions are pretty bad, especially the UAW, but this near deat experience is NOT unions fault, this one is on management. Bottom line is that
The right Product wasn't there, and GM may have made good cars but they misread the market. When gas went thru the roof Toyota started losing Tundra money but made a lot of money in smaller cars, GM did not have that to fall back on. Cobalt just wasn't competative and GM could not charge enough for it to offset loses in SUVs and trucks.
It looks like GM is learning, Malibu is great, Cruze should be good and at the same time still makes nice SUVs.
montoym 6:19PM (9/28/2009)
quote from SeaUrchin:
- "and GM could not charge enough for it to offset loses in SUVs and trucks." -
Hidden within your defense of the Unions is the primary reason the Unions had a role in GM's bankruptcy.
Hard for them to charge enough to offset the losses when they are already have to charge more than their non-union competition just to break even due to higher labor costs.
The high demands of the Unions absolutely played a large part in causing GM(and the rest of the big 3) to rethink and reorganize how they do business with Union labor. Even though Ford didn't enter Bankruptcy(through crafty and timely mortgaging of everything), they still renegotiated their contracts with the UAW to bring down the staggering costs that helped drive all of the big 3 to the brink(and pushed two over the edge).
I'm not saying that the UAW is the sole reason for GM and Chrysler's BK's, but I'm not as foolish as to hold them completely unaccountable as you are. There were many players on that team and the UAW definitely played their part.
Jake 5:40PM (9/28/2009)
I knew that guy's name had to be Herb.
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Tony 5:42PM (9/28/2009)
How the frig did Sea Urchin get three stars? I guess it's not who you know but who you ----.
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dodgeboy 6:16PM (9/28/2009)
I thought that Fiat owns 35% of Chrysler right now and there was like 4 goals it had to meet before it got 55% ownership?
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Brian 6:23PM (9/28/2009)
GM won't be going public in 2010.
They're going to put it off, again and again, and keep lowering expectations. It is General Messup SOP. Promise the moon, sky, and the stars, deliver dog sh*t,
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Collin Armbruster 9:22PM (9/28/2009)
lol.
http://chud.com/nextraimages/pabsad.JPG
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John 9:47AM (9/29/2009)
Gee, it was such a good investment before for stockholders, and bondholders, and anyone else not tied to the UAW's coattails.
There's not a pole long enough in this world that I would touch that IPO with.
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Epsilon-Not 12:37PM (9/29/2009)
Plenty of people made money off of the old GM's stock...
Er, wait, maybe shorting it shouldn't count.
BJ 6:41AM (10/01/2009)
......The same thing we do every night, Pinky.......
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