Gm ipo what does it mean

Much further down the road, competition will come from China and India. What does this mean for GM? In the midst of the changing competitive landscape, consumers who may not have considered buying a GM vehicle over the past decade may now be inclined to do so again. What the company has done in rationalizing the number of brands in its portfolio has been a good start, but more needs to be done.

I also expect potential US car buyers to have mixed feelings about the brand, given that it has received taxpayer support to survive during the financial crisis. On the international front, GM is less saddled with negative perceptions, especially in emerging markets.

In the future, the company has the potential to leverage this source of demand to learn from these experiences and design and develop innovative products.

What should GM do? It must aim to achieve a clear transition with the IPO and not be satisfied with only incremental improvements. While consumers may be willing to give the company the benefit of the doubt as it progresses with the IPO, GM must not only follow through with products that deliver higher quality and reliability but also clearly communicate these advances to consumers, even If that means focusing on just a small subset of top products like the Chevy Malibu.

It is no coincidence that the IPO is positioned around the launch of the Volt to maximize awareness of the changing view of the brand. Given this complex and challenging situation, I see this as a unique and potentially crucial inflection point for GM another one may not come again for years. Executing on quality, innovation, and messaging can help the company maintain its position and even grow its market share.

These crucial decisions will determine the future evolution of the auto industry. His research has included modeling the interactions between consumers when choices are interdependent. As is often the case with privatizations, the General Motors IPO will be one of the most significant events of the year in the equity capital markets.

Its size is even more remarkable, given the still fragile state of the equity markets. With stock sales in the US at a five-year low , raising this amount of funding is a delicate exercise that requires careful structuring of the transaction, cautious pricing of the shares, and wide diversification of the pockets of demand by the underwriters.

These elements explain the concurrent convertible preferred stock offering, the discount to the trading multiple of Ford Motor Co. IPOs require a leap of faith from investors who have to bet on a new company. Bruce Belzowski: Do they return to short-term thinking versus long-term thinking for their company?

Belzowski: The finance guys get too much into that, and they lose track of the product and they lose track of what the company stands for. Our mission at Marketplace is to raise the economic intelligence of the country. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. Skip to content. Alisa Roth Aug 19, Listen Now. While many hope General Motors' return to trading marks a revival of the company, Maynard says GM's success is still fragile, especially considering the current economic landscape. She says, "One of the things that's most important about this is that the economy, in general, is pretty awful still It could almost take one little thing to knock all of that back again.

If anything, they're just checking this day off of a big checklist of things they have to do. Going forward, many will be watching General Motors for signs that it has returned to some semblance of its former strength and stability. Maynard says there are a few signs people should be watching for as indications that GM is truly back. General Motors, someday, will have to pay dividends again to shareholders, and that will be a big indication.

The problem with that is that they owe the government tens of billions of dollars. In addition to watching the money General Motors makes and the money it pays back to the government and to shareholders, Ms. Maynard says that, with its return to public trading, people are anxious to get a glimpse inside the company. So, I think people will be watching extremely closely to see what this new information reveals about the state of General Motors, and, sort of by extension, the state of the Michigan economy.

With a new administration set to take over in Lansing next January, it remains uncertain when and if Michigan will place as much trust in General Motors as it once did to create jobs and fund community projects. You went to General Motors to create jobs. It wasn't the other way around.