General Motors dealerGeneral Motors is offering some 600,000 employees, retirees and dealers the chance to purchase stock in the resurgent company as the auto giant moves forward with its initial public offering, slated for next month.

Under GM's "directed share" program, workers and dealers have until Oct. 22 to register to buy an unspecified number of shares in the new company at the IPO price, according to a notice posted online. Typically during an IPO, small investors must purchase shares through a broker.

The deal gives those affiliated with GM a strong incentive to help the new company succeed, analyst Rebecca Lindland at IHS Automotive told The Detroit News. "It's good when employees have a certain stake in the company's performance," Lindland said. "It keeps you focused. Employees have a vested interest -- literally."

Rules of Registration

GM employees already have a vested interest in the form of a 17.5% holding by a retiree health care trust, managed by the United Auto Workers, established as part of the company's government-backed bankruptcy last year. Other stakeholders include the federal government, which has a 61% share, as well as the Canadian and Ontario governments and bondholders in the former GM.

To be eligible to buy shares, buyers must register via mail by Oct. 19 or online by Oct. 22. Those who fail to register won't be able to purchase stock at the IPO price. Though no minimum amount of stock has been specified, GM reportedly will require a minimum $1,000 investment.

GM shares are expected to begin trading on Wall Street next month, after the Nov. 2 midterm elections. Company officials will begin a "roadshow" soon after, with the goal of beginning a stock sale by Nov. 18.

Treasury Secretary Timothy Geithner and GM CEO Daniel Akerson met Tuesday for an hourlong meeting at the Federal Reserve Bank of New York ahead of the stock sale. Officials from both sides declined to discuss the meeting, but said that the IPO is on track for next month, barring unforeseen market changes, The Detroit News reported. Treasury's top auto adviser, Ron Bloom, also attended.

Charging Up to Build Volts

The Detroit automaker hasn't decided whether it will offer an employee stock ownership plan after its IPO, according to the News, largely because, as an entity, GM doesn't own any stock.

About 79,000 U.S. employees, 9,000 in Canada, 517,000 retirees and surviving spouses and more than 3,000 dealers are eligible for the program, the Detroit Free Press reported. Morgan Stanley (MS), one of the lead underwriters of GM's IPO, is administering the purchase plan for employees.

Separately, GM said Tuesday it will start official production of the $41,000 Chevrolet Volt electric vehicle Nov. 10.

Models will begin showing up on dealer lots about a month later, Tom Stephens, the company's chief of global operations, told The Detroit News. Preproduction Volts have been built at the automaker's Detroit-Hamtramck plant since late March.

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We need the nay sayers out there to keep the ipo price down, so when I buy as much as i am allowed I'll max my profit when they or their mutual funds decide to buy in.

October 25 2010 at 4:33 PM Report abuse rate up rate down Reply

Fool me once, shame on you...fool me twice, shame on me. You have to be nuts to buy this stock.

October 14 2010 at 2:07 PM Report abuse rate up rate down Reply

I thought it was a slap in the face to all retired GM workers and all the other GM workers who lost all of their stocks in the shortest bankruptsy in history. Imagine , they want to give me first chance to by some of the common stock, we are not allowed preferred stock, thats for the CEOs.All GM workers have suffered because of this so called bankrpptsy, they used our tax dollars to get back on their feet and now they want us to buy our own stock back so they can give the money back to the CEOs while we regain nothing, all this while the union stands by with their eyes closed and there hands out. I would like to see the AARP unite retired workers to boyctt GM instead of trying to sell us replacment insurance to cover what GM took away from us.

October 14 2010 at 12:47 PM Report abuse rate up rate down Reply

Can GM be trusted?, I retired after 37 years as a salaried employee with GM. My pesnsion was turned over to the PBGC, I have NO health or life insurance. Union employees were treated much better. Good luck buying GM stock. Thier track record shows when things go bad they turn and run. I wish them success, I just wish they would have treated me with a little respect.

October 14 2010 at 10:26 AM Report abuse rate up rate down Reply

I am one of the common stock holders that had holdings value that went to 0. I wrote leatters to GM complaining about the excessive compensation being paid to the executives and board members when GM was in dire straits.I recieved no replies not even in a form letter. I'll buy no more than 10 shares just to have some mild drama in my life. People here,on the comment page, who think that they will not be owning GM are mistaken.If they have any mutual fund accounts,the managers of said accounts will be doing your buying. A strong caviat ( let the buyer beware ) should be employed before you make any large purchases of this IPO.

October 14 2010 at 8:03 AM Report abuse rate up rate down Reply
mike edwards

think about how the hope and change is working out then if you want to buy stick go right ahead god bless

October 14 2010 at 6:53 AM Report abuse +1 rate up rate down Reply

I CAN'T IMAGINE ANYONE BUYING A PENNY'S WORTH OF GM STOCK WHEN THEY ALREADY SCREWED MILLIONS OF PEOPLE OUT OF THEIR STOCK WHEN THEY WENT BANKRUPT ON THEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

October 13 2010 at 6:30 PM Report abuse +8 rate up rate down Reply

Oh yeah, allow the Chinese to purchase shares w/o commission and support a worker-exchange program, allowing for workers to work 6 months in China, 6 months in the US, with no federal income tax on the wages earned in China. The devil is in the details, but let EDS handle the "paperwork" and leave the driving to US.

October 13 2010 at 6:01 PM Report abuse rate up rate down Reply

I see GM being worth $300-$400 per share within 12 months, provided that the fed commits to ramping up the production of new money. Increase the number of presses by 5 fold and run them 24/7, then you'll see stock prices rise rapidly.

October 13 2010 at 5:56 PM Report abuse -3 rate up rate down Reply
1 reply to MSmailbox's comment

Maybe in Kenya

October 14 2010 at 9:58 AM Report abuse +1 rate up rate down Reply

this is no special opportunity. just praying some will bite. this stock should be in the pink sheets. sure, they shed debt and obligations, but, they will never make any real money and if they do, the government is the first creditor.

October 13 2010 at 5:55 PM Report abuse +5 rate up rate down Reply