Citing "three people who know about the discussions," BusinessWeek reports that General Motors is ruminating whether or not to build a high-zoot showroom in Manhattan to gain favor among "high-fashion New Yorkers, tourists and high-rolling investors." The stated aim would be to raise awareness and cachet of the company's four brands as the IPO machine moves to the next gear. And who knows, it might also increase the 9.6% market share that The General commands in the NY metro area.
The possible perception of such a move is said to give GM pause – if one Corvette can get the wolves a-howling, how much much more so a big-money show-off space in a big-money city? With an IPO planned by Q1 of 2011, GM could hardly get any bump from a Manhattan location even if it opened tomorrow. Hence, a more important consideration might be whether GM is ready to spend the long-term time and money to make such a showroom pay off, should it decide to build one. That would most certainly take years of New York minutes and Manhattan rents, and until GM was fully private again it would certainly take a beating on it.
[Source: BusinessWeek via GM Inside News]