• Oct 22, 2010
2011 Chevrolet Volt – Click above for high-res image gallery

General Motors is getting closer to the day it takes that financial plunge and once again offers its stock to the world. The day of the IPO, which is speculated to occur in November, will be a very important day for the future of GM. If it goes well, it will provide the automaker with a massive infusion of cash, much of it which figures to be used to repay the government. The money could also be tucked away into the General's treasury where it can serve to fund product development. One such area of development? Electric vehicles.

GM is finally getting ready to release the Chevrolet Volt upon the waiting world, and early demand for the vehicle is high. However, the technology's long-term financial viability at GM remains very much in doubt, and according to TheDetroitBureau.com sources, while other Voltec programs are being explored, nothing has been approved yet because executives and board members are waiting to see how the IPO affects their research and development budgets.



Photos copyright ©2010 Chris Paukert / AOL

[Source: The Detroit Bureau]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 12 Comments
      • 4 Years Ago
      The IPO will be a factor in the speed at which EVs are developed, but what will really dictate GM's EV policy are the sales figures on the Volt.
        • 4 Years Ago
        Exactly. I'm pretty sure the initial Volt production is already budgeted, and current GM sales mean that they should be fine even without an IPO.

        If most of the IPO would simply pay down debt, as it should, the net balance sheet won't be hugely affected on way or another.
      • 4 Years Ago
      I basically read this whole article and summed it up with, "They're going to decide what they're going to do, based on how much money they receive."

      K.

      I mean, the Volt is already paid for - why step out there with a Converj or MPV project or Voltec brand if the money isn't there or if the Volt isn't a rip roaring success or if they don't receive a huge cash influx from the IPO? Seems like common sense to me.
      • 4 Years Ago
      " much of it which figures to be used to repay the government." OR fund bonuses and pensions! flameon
      • 4 Years Ago
      GM has already announced more SUV's.....vehicles they can really sell instead of this knee-jerk EV crap.
      • 4 Years Ago
      Let's hope that some of the funds go to reviving Pontiac. I'll take an electric Firebird Trans Am!
      • 4 Years Ago
      Does anyone know if "old" GM took with it the 4 billion development costs of the Volt?

      If so, I'm not crying a river here. I'm sure if not all, most of the costs got written off with the other 169 billion in liabilities.

      Bottomline: Screw GM. Good luck with the stock sale.

      p.s. - VOTE THEM OUT NOVEMBER 2nd!!! If they are in office, they need to be OUTTA office. Let's take back this country.
      • 4 Years Ago
      I think it's safe to say we're seeing a paradigm shift in the making.

      Alternate fuel cars are where we're headed. The pace and the final tech we agree on are the X factors...but more money means more research.

      Imagine where we'd be if all the money/advancements spent on ICE were focused on electric motors. It'd be crazy.
        • 4 Years Ago
        More money being spent on electric motors development wouldn't make much difference; they are already better than 90% efficient at turning electrical power into motion, and pack lots of power into small and light packages.

        Now, more money spent on battery research could make a difference.
      • 4 Years Ago
      I wonder whether Converj will be back on the table.
      • 4 Years Ago
      "much of it which figures to be used to repay the government."

      I thought it was more the Government selling their stake in the company?