GM IPO General Motors' anticipated initial public offering remained up in the air Thursday, according to the Wall Street Journal. "We're not there yet," CEO Ed Whitacre told a reporter at an industry conference in Traverse City, Mich. "I don't know when, I don't know how," he said.

Speculation has run rampant in recent weeks that GM would file papers to begin an initial public offering this month, giving the company ample time to complete the stock sale by the fall midterm elections.

The company and the Obama administration have come under fire from critics who say GM -- as well as Chrysler -- shouldn't have been bailed out by the federal government last year, following the near-collapse of financial markets in late 2008. Offloading the government's share -- and minimizing any loss from the sale -- could help Democrats in their bids for reelection.

In April, GM completed payment of nearly $7 billion dollars in cash that it received from Treasury. GM still owes the government about $43 billion, which could be repaid by the sale of GM stock. The federal government owns about 60% of GM, leading some to deridingly refer to the company as "government motors."

Whitacre also said Thursday that the Detroit-based automaker would discuss CEO succession "at the right time." Whitacre took over the top post at GM on a temporary basis when former CEO Fritz Henderson was ousted late last year. Whitacre, the 68-year-old former chief of AT&T (T), was appointed permanent CEO in January.

Given his age, however, there has been speculation that Whitacre isn't long for the position, and that a search for new chief executive may begin sooner rather than later.

Increase your money and finance knowledge from home

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Add a Comment

*0 / 3000 Character Maximum

53 Comments

Filter by:
Randy

The government owns 60% of GM! Where's the other 40%? Is that the graft, payola, or kickbacks the O'Bama turned over to the Union Leaders for helping get him elected? Radical Leftist Democrats are always quick to talk about Corporate Bonuses and Executive Salaries. I ask, what about the Mega Wealthy Lavish Living Union Bosses who are getting huge salaries, graft, kickbacks from guys like O'Bama, and even hardworking taxpayer dollars?

August 06 2010 at 8:32 AM Report abuse -1 rate up rate down Reply
dalea158

I see Glen Beck bad mouths GM whenever he can. The plant that GM built in mexico is a prime example why the free north america trade agreement was a disater from the get go. Please don't tell me Beck was not for that trade agreement, most conseratives were for it. Thanks Glen for the double talk, again!!!

August 05 2010 at 10:46 PM Report abuse +2 rate up rate down Reply
cmp1996

How about the guy in the White House and his minions trampling over the bankruptcy laws and giving the unions the shares that rightfully should belong to the secured creditors -- at least they used to be secured creditors -- until the marxist assumed the throne.

August 05 2010 at 7:37 PM Report abuse rate up rate down Reply
brhurdle

I'm sorry but I am offended by the way that the Feds treated people who held GM debt. The last straw was the Whitacre statement about paying back the $7 B which was a totally bogus transaction - it was an obvious attempt at deception. I have been a lifelong GM customer with the purchase of 8 Chevys, 5 Pontiacs and 1 Buick vs 4 Fords. However, I will no longer purchase GM products and will convert exclusively to Ford.

August 05 2010 at 6:42 PM Report abuse -1 rate up rate down Reply
lskrcpilot

Sure would like to know if G.M will make good on the $7500 worth of stock they stole from me to give to the Obama Administration and UAW. Shouldn't I be given back those shares before they sell a new offering to complete strangers. I am getting even however. Ever since they shut me out I've been lobbying against anyone buying a GM vehicle.I wont be happy until I've concinced enough people to buy anything but GM and that figure surpasses one million dollars. Progress is good so far and I will meet that goal. That's a promise...LK

August 05 2010 at 6:12 PM Report abuse rate up rate down Reply
planetkingted

The thing that too few seem to know is that GM "paid back" the $7b with other goverment $, at a lower rate. All we did was refinance the debt to create the appearance of repayment. It's all Obamaism smoke and mirrors.

August 05 2010 at 5:54 PM Report abuse -2 rate up rate down Reply
1 reply to planetkingted's comment
socialeconomist

2009; if you give us $60 billion dollar we employ 10,000,000 citizens.... 2010; the check has been cashed... Where are the jobs ?....... UAW = U Are Worthless

August 05 2010 at 5:49 PM Report abuse -2 rate up rate down Reply
jsbseven

what about the stock that obama stoled from people that had it ti retire worthabout .40 cents

August 05 2010 at 5:46 PM Report abuse -1 rate up rate down Reply
GENE

GM will build plant in central Mexico

Michael Ellis
Detroit Free Press
Apr. 1, 2006 12:00 AM

DETROIT - Even as General Motors Corp. closes plants in the United States, the automaker plans to break ground on a new car-assembly plant in Mexico, where sales are strengthening and GM is the market-share leader.

The GM plant, in the central Mexican state of San Luis Potosi, will employ 1,800 to 2,300 workers, GM spokesman Carlos Gelista said Thursday.

GM will invest $600 million to $650 million in the plant and the tooling to build vehicles. The Mexican government has contributed incentives to help fund the construction, Gelista said. advertisement




Construction will begin in late May or early June, and compact and subcompact vehicles will begin rolling off the assembly line in 2008. GM has no plans to export any of the cars to the United States, Gelista said. He did not identify which vehicles would be built there.

"We are looking to try to export some of the production of that plant to Central America and South America," he said.

Even with gasoline prices averaging $2.50 a gallon, there's little demand in the United States for such subcompact cars as the Chevrolet Aveo, said Catherine Madden, a senior analyst with Global Insight.

Gas prices would have to rise to $4 a gallon and remain there for a year to spur demand for subcompacts, Madden said.

"There's not a lot of indication that Gen Y is going to jump into the subcompact segment," Madden said.

GM sold 68,000 Chevrolet Aveos in the United States last year. Demand is much stronger for compact and subcompacts in Mexico and South America.

GM told Mexican media about the plant a week ago but didn't release information to the U.S. media.

GM may have kept news of the plant quiet in order not to upset the United Auto Workers union, said Guido Vildozo, director of South American and Central American forecasting with Global Insight.

"It's managed to fly under the radar screen," he said. "I guess they're awfully cautious to make sure that nobody in the UAW feels hurt by this decision. That's the reason they've kept a low profile on the news release."

GM already imports several of its top-selling vehicles, including the Chevrolet HHR small car and Buick Rendezvous SUV, from Mexico. GM also builds the Chevrolet Silverado pickup and the Chevrolet Suburban and GMC Yukon XL large SUVs in Mexico as well as the United States.

The new plant would probably build around 50,000 cars annually, Vildozo said.




thank you for creating jobs, Obama, in Mexico with tax payer's money

August 05 2010 at 5:42 PM Report abuse -2 rate up rate down Reply
Don's PT Crusier

Have you non working American people seen that screwball on TV. General Motor's is selling 1000 cars per day. 1000 times 365 must be over time = 365,ooo cars. That includes week ends.

August 05 2010 at 5:37 PM Report abuse +1 rate up rate down Reply
1 reply to Don's PT Crusier's comment
jkziggy1

Don, your numbers are not even close to reality. In July 2010, GM sold 199 thousand vehicles in the USA for the month. They were the Number ONE seller in USA sales with 4 less sales divisions from 2009. Please fact check your sources before you blog. Blogging false figures continues to injure Corporate America struggling to compete globally and create North American jobs.

August 05 2010 at 6:39 PM Report abuse +1 rate up rate down Reply