General Motors Future
- Submitted by: bigash786
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- Category: History
- Date Submitted: 08/20/2010 07:20 PM
- Pages: 3
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What makes the company from falling into another hole.
Should have the governement let the giant fail?
Would the governement get any praise for helping the automotive comany?
Current CEO - ED WHITACRE,
AT&T
announced his own imminent departure, deserves a
Just over a year ago, GM was taking its first faltering steps on the road to recovery, as it emerged from its government-orchestrated “quick-rinse” bankruptcy. But despite shedding debt, dropping several brands, shrinking its bloated dealer network, cutting jobs and securing concessions from those workers who remained, there were still plenty of sceptics.
Could a company that had lost $88 billion in the four years to 2009, had only been kept afloat with $60 billion from American and Canadian taxpayers and which had become known as “Government Motors” really shuffle off its culture of failure so easily? However, after reporting net earnings of $1.3 billion for the three months to the end of June yesterday—the carmaker’s second profitable quarter in a row and its best since 2004—the evidence that “New GM”, as it likes to call itself, is a different business is mounting. So much so that later today or early next week, the company is expected to file an S-1 registration document with the Securities and Exchange Commission, paving the way for an initial public offering before the end of the year.
Mr Whitacre sensibly decided that given his 68 years, questions about succession would be a drag on the IPO’s potential success. To that end, he has picked a fellow GM board member, Dan Akerson, to take over from him as chief executive next month and as chairman by December. Mr Akerson, 61, is another former telecoms executive who has worked in recent years for Carlyle, a big New York-based private-equity group. That Mr Akerson has no prior knowledge of the car industry is not necessarily a disadvantage: Alan Mulally, who came to Ford from Boeing in 2006, is given credit for turning round GM’s cross-town rival....
Should have the governement let the giant fail?
Would the governement get any praise for helping the automotive comany?
Current CEO - ED WHITACRE,
AT&T
announced his own imminent departure, deserves a
Just over a year ago, GM was taking its first faltering steps on the road to recovery, as it emerged from its government-orchestrated “quick-rinse” bankruptcy. But despite shedding debt, dropping several brands, shrinking its bloated dealer network, cutting jobs and securing concessions from those workers who remained, there were still plenty of sceptics.
Could a company that had lost $88 billion in the four years to 2009, had only been kept afloat with $60 billion from American and Canadian taxpayers and which had become known as “Government Motors” really shuffle off its culture of failure so easily? However, after reporting net earnings of $1.3 billion for the three months to the end of June yesterday—the carmaker’s second profitable quarter in a row and its best since 2004—the evidence that “New GM”, as it likes to call itself, is a different business is mounting. So much so that later today or early next week, the company is expected to file an S-1 registration document with the Securities and Exchange Commission, paving the way for an initial public offering before the end of the year.
Mr Whitacre sensibly decided that given his 68 years, questions about succession would be a drag on the IPO’s potential success. To that end, he has picked a fellow GM board member, Dan Akerson, to take over from him as chief executive next month and as chairman by December. Mr Akerson, 61, is another former telecoms executive who has worked in recent years for Carlyle, a big New York-based private-equity group. That Mr Akerson has no prior knowledge of the car industry is not necessarily a disadvantage: Alan Mulally, who came to Ford from Boeing in 2006, is given credit for turning round GM’s cross-town rival....