General Motors says goodbye to CEO when public offering is days away

General Motors had a tumultuous last few years. Sequential years of falling sales resulted in GM filing for bankruptcy and asking for bailout funds from the government. GM was placed under government conservatorship, and also the terms of the bailout included that the government held a majority of shares. The short time GM was in bankruptcy was not ill spent. Chairman and CEO Ed Whitacre, Jr. announced he would soon retire, and an Initial Public Offering of General Motors stock is reportedly only days away.

Ed Whitacre the GM CEO is stepping down

General Motors Chief Executive Officer and Chairman of the board Ed Whitacre Jr. is going to retire, according to the New York Times. He was chairman of AT and T before going over to General Motors. Former Nextel executive Daniel Akerson can be his replacement. Whitacre will step down as CEO by September and step down as Chairman at the end of the year. Whitacre had prepared to retire once General Motors was back in fighting shape all along, and had said so. It looks like that is precisely what’s happened.

GM posting profits

General Motors has realized a second quarter of consecutive profits after filing for bankruptcy and turning over the majority of their shares to the American and Canadian governments. According to USA Today, GM has just posted a profit of $ 1.3 billion. In the second quarter of 2009, GM had missed a huge debt payment. GM posted a profit last quarter, as outlined by CNN Money, of $ 865 million. This is a sure sign that things are looking up for the auto manufacturing giant, which had to divest itself of all but four main brands to survive – Buick, Cadillac, GMC and Chevrolet.

GM IPO shortly to follow

General Motors is no longer listed on stock exchanges because of its bankruptcy, and will have to hold a public offering to buy back the 60 percent of shares the government holds and pay off the Treasury. GM Chief Financial Officer Chris Liddell has not committed to a date, but its predicted soon. A leaner and meaner General Motors might open its Initial Public Offering at a record price for GM stock.

Additional reading at these websites

NY Times

nytimes.com/2010/08/13/business/13auto.html?_r=1 and src=mv

USA Today

usatoday.com/money/companies/earnings/2010-08-12-gm_N.htm

CNN

money.cnn.com/2010/08/12/news/companies/gm_results/