Car Blog (2) – Government Motors
Since the former largest automotive company in the world has a new shareholder, the US Government for 61%, things seemed to have improved considerably.
In Q2-2010, the company showed a considerable net profit of $ 1.3 billion over a 3 month period. Exceptional, said all automotive industry analysts in the business papers.
What’s really happening? Well, GM wants to go to the stockmarket on short term to raise about $ 15 billion to get rid of the ‘Government’ and become ‘General Motors’ . With the global markets slowing down again, they are in a hurry. Seize the moment, while the champagne corks are still plopping.
I wonder what type of investors are going to step into this company who has had 4 CEO’s in the last 18 months. Would you? Probably your bank will..
Let’s wait and see what happens. I’ll keep following things up.
Gerard Ekhart
Trendwatcher Automotive
August 2010