Autoblog

General Motors asks IPO banks to take cars instead of fees

Sam Abuelsamid — Mon, 19 Jul 2010 07:57:00 EST

At some point in the not too distant future, General Motors will return to being a publicly traded company, with the timing likely to be based in part on both business and politics. In May, the automaker began soliciting investment banks to handle the sale of its stock. With what will likely be one of the largest public stock offerings of all time, the banks are undoubtedly salivating at the potential fees they will collect in the process.

With the GM sale being potentially huge and IPOs still relatively scarce during the economic downturn, the automaker feels it has some leverage with the banks. As a result, it's asking the money-changers to be creative about how they'll market the sale and be compensated. One potential option is for banks to use some of the fees to purchase GM vehicles or subsidize purchases by employees. This will both lower the cost to GM and the U.S. Treasury, while improving GM's revenues. One particular benefit would be getting wealthy bankers to take a serious look at GM vehicles, possibly helping the automaker get a better demographic. Or something...

[Source: Bloomberg Businessweek]

General Motors asks IPO banks to take cars instead of fees originally appeared on Autoblog on Mon, 19 Jul 2010 07:57:00 EST. Please see our terms for use of feeds.

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Report: General Motors may file for IPO as soon as next week

Sam Abuelsamid — Wed, 23 Jun 2010 11:31:00 EST

Filed under: GM, Earnings/Financials

It looks like General Motors could file its first paperwork for an initial public stock offering as soon as next week. The IPO registration is the first step in the process of getting approval from the Securities and Exchange Commission to become a publicly traded company again. A stock sale could come as soon as November and probably no later than early 2011.

At this point it appears that most of the shares to be sold will come from the block held by the United States Treasury, which accounts for 60.8 percent of the automaker. The Treasury would like to start unloading its stake as soon as possible and preferably before this year's election. Roughly one third of the government's holdings are expected to be sold in what may well be the biggest IPO of all time. Depending on the IPO price, the sale could bring in anywhere from $10-20 billion for what would be about 20 percent of the company. At the time of its bankruptcy last year, GM's market capitalization was barely $700 million.

[Source: The Detroit News | Image: Stan Honda/Getty]

Report: General Motors may file for IPO as soon as next week originally appeared on Autoblog on Wed, 23 Jun 2010 11:31:00 EST. Please see our terms for use of feeds.

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Report: Bryan Nesbitt out as Cadillac boss, Mark Ruess consolidates

Sam Abuelsamid — Tue, 02 Mar 2010 07:30:00 EST

Filed under: Hirings/Firings/Layoffs, Cadillac, GM

Most agree that the majority of General Motors' recent products are easily on par with the competition in terms of design, quality and performance. And having shed much of its legacy costs in bankruptcy last year, GM should be making money on those products. However, sales of many of its newest, greatest products have languished and the blame seems to have fallen - according to Jim Hall and Peter Delorenzo - on marketing.

After bankruptcy, the general managers for each division were primarily left with the responsibility for sales and marketing, and while Chevrolet and GMC have made progress in recent months, Cadillac has not. Last summer GM promoted Bryan Nesbitt from the design department where he led North American styling to be Cadillac's general manager. As of this morning, not any more.

Following its monthly sales conference call this morning, GM is planning to announce executive level changes in its sales and marketing staffs including the possible release of Nesbitt. It also appears that GM president Mark Reuss is consolidating more of the sales and marketing responsibilities and reporting to himself. Marketing boss Susan Docherty still reports to Reuss, but several people who formerly reported to Docherty will apparently now directly report to the president.

Cadillac communications manager Nick Twork declined comment on the whole matter. We'll know more later in the day.

[Source: Motor Trend]

Report: Bryan Nesbitt out as Cadillac boss, Mark Ruess consolidates originally appeared on Autoblog on Tue, 02 Mar 2010 07:30:00 EST. Please see our terms for use of feeds.

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GM teaming up with NASA to build robots. Suck it, Asimo [w/video]

Frank Filipponio — Thu, 04 Feb 2010 14:28:00 EST

Filed under: Etc., Technology, GM, Honda, Toyota

Robonaut 2 by GM and NASA - Click above for high-res image gallery

Phase three of the robot invasion has begun. Not content to let Honda and Toyota have all the fun, General Motors has gotten into the robot game as well. Working with NASA - all of these planetary takeovers involve space invaders after all - The General has developed "the next generation of robots and related technologies for use in the automotive and aerospace industries." Dubbed Robonaut 2, or R2 (-D2?), this second-generation automaton is a "faster, more dexterous and more technologically advanced robot. This new generation robot can use its hands to do work beyond the scope of prior humanoid machines." Throttling humanoids eerily fits into that description.

GM's interest in the R2 unit is safer plants. "The partnership's vision is to explore advanced robots working together in harmony with people, building better, higher quality vehicles in a safer, more competitive manufacturing environment," according to Alan Taub, GM's vice president for global research and development. They've obviously gotten to him already. All hope is lost. Resistance is futile. Assimilate.

Seriously though, GM's Robonaut 2 differs slightly from Honda's Asimo and the Toyota elderly-helping robot in that it seems to be intended for private use rather than retail sales. We're not sure if it can play a trumpet or not, but follow the jump for a video of your how your new master works.

Gallery: Robonaut 2 by GM and NASA

[Source: General Motors]

Continue reading GM teaming up with NASA to build robots. Suck it, Asimo [w/video]

GM teaming up with NASA to build robots. Suck it, Asimo [w/video] originally appeared on Autoblog on Thu, 04 Feb 2010 14:28:00 EST. Please see our terms for use of feeds.

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GM announces... 2011 Chevrolet Volt will get 230 mpg city!

Sam Abuelsamid — Tue, 11 Aug 2009 08:23:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Chevrolet, GM, Electric

In case you missed it this morning, General Motors CEO Fritz Henderson made some big news just one month after the "new" GM emerged from bankruptcy protection.

First of all, Henderson announced that the GM FastLane blog would now be used to solicit feedback on new designs directly from customers. Over the next two years, GM will be launching 25 new models in its four remaining "core" brands (Chevrolet, Cadillac, Buick and GMC).

After the webcast ends, we'll going over to the design dome for a preview of the new large XTS and small ATS models from Cadillac. The latter will slot in below the CTS and be aimed directly at the BMW 3-series with rear- and all-wheel drive. The XTS is expected to be based on a stretched Epsilon II platform.

The biggest bombshell is Henderson's announcement that the "230" marketing campaign floating around for the past week is related to the 2011 Chevrolet Volt. The EPA has released a new methodology for determining a draft fuel economy standard for extended-range EVs like the Volt, and under this new procedure, the Volt will have a composite urban fuel economy rating of 230 mpg! On the electric side, the Volt will consume 25 kW-hours per 100 miles. That makes the Volt the first car ever to get a triple digit fuel economy rating.

According to Frank Weber, vehicle chief engineer for the Volt, the number is based on combined electric only driving and charge sustaining mode with the engine running. He declined to get specific about the proportions, but did say that the urban cycle would be predominantly EV only. The EPA has been studying real world vehicle usage and is developing the formulas to try and provide a representative number of what most customers could expect to achieve. In addition to the composite number, the new EPA stickers will likely also get numbers for mileage in charge sustaining mode and electric efficiency in EV mode.

Stay tuned for more news from this morning's event as it happens.

Gallery: 2011 Chevrolet Volt

[Source: General Motors]

GM announces... 2011 Chevrolet Volt will get 230 mpg city! originally appeared on Autoblog on Tue, 11 Aug 2009 08:23:00 EST. Please see our terms for use of feeds.

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Paging Captain Obvious: Liquidation Motors reportedly tanks in trading

Dan Roth — Thu, 16 Jul 2009 09:57:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

The short version: old General Motors is worthless, new General Motors is... well, less worthless. The Securities and Exchange Commission has already warned us that Motors Liquidation Company, the new name for the leftover scraps of GM, is not expected to return any value to stockholders. Despite this, the stock still has a fractional dollar value assigned to it, and some investors are still trading it. Yesterday, shares dipped 52%, closing at 55 cents.

The newly created "good" GM emerged from bankruptcy less than a week ago, and what's left at Motors Liquidation, still publicly traded, is highly unlikely to return any value, as Motors Liquidation will still be underwater after Chapter 11 fire sales are over. Bloomberg reports that this shell of the former company has 16 shuttered plants to sell off, as well as a nine hole golf course in New Jersey (we're as confused as you are), and of course, it is still beholden to unsecured creditors and also still holds the bag for lawsuit liabilities, too. Warnings are being clearly stated and more and more investors appear to be cottoning on to the reality that MLC stock doesn't hold much water, which explains the stock's precipitous decline.

[Source: Bloomberg via STLtoday]

Paging Captain Obvious: Liquidation Motors reportedly tanks in trading originally appeared on Autoblog on Thu, 16 Jul 2009 09:57:00 EST. Please see our terms for use of feeds.

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GM dealer downsizing could lead to barrage of lawsuits

Dan Roth — Mon, 04 May 2009 15:33:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

Rock, meet hard place. With General Motors handed a directive from the White House to be ultra-aggressive in its restructuring in order to secure more government loans, the automaker is making cuts everywhere and dealers are far from immune. As reported previously, GM's plan to shrink its retailers from nearly 6,300 to 3,700 by the end of 2010 is going to be as painful as a Civil War amputation. Initially, General Motors will deny franchise renewal to dealerships that don't measure up on metrics such as customer satisfaction, profits, volume, and capitalization. An initial group of 1,200 stores will either have an uncomfortable meeting or get a "Dear John" letter starting this month.

Unsold cars will be bought back, but GM hasn't made any intimation that it's interested in compensating for special tools, parts inventory, real estate, and the "blue-sky" value of the outlet. The move to buy back only the unsold cars is likely to lead to legal action on the part of some dealers. The dealers are not only nervous, but they've often leveraged one dealership against their others in order to capitalize their operations. Closing one store that's part of a family of dealerships could start a domino effect for that franchisee, and state franchise laws protect the dealers far more than the automaker. Without filing for Chapter 11, General Motors faces a real fight in its action to pull franchises.

[Source: Automotive News - Sub. Req.]

GM dealer downsizing could lead to barrage of lawsuits originally appeared on Autoblog on Mon, 04 May 2009 15:33:00 EST. Please see our terms for use of feeds.

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