GM stock could make a comeback are we at the end of the recession
General Motors said it would replace its chief executive with a board member who has no experience in the automotive sector but with a good reputation on Wall Street, but a surprising decision that seems destined to pave the way for the automaker's shares traded on the stock market again.
GM said Daniel Akerson, an executive with 61 years known as an expert in reaching agreements in the telecommunications sector, will assume leadership of the company from September first. Edward E. Akerson replace Whitacre Jr., former CEO of AT & T that was retired when the government of President Barack Obama tasked to oversee the reorganization of the company, funded by the U.S. government, after passing through the bankruptcy court.
Whitacre, 68, will remain chairman of GM's board until December, when also assign this position to Akerson.The leadership change was announced after GM reported a net profit of U.S. $ 1,300 million in the second quarter thanks to higher sales of vehicles, especially trucks and higher prices in North America. This figure continues on A profit of U.S. $ 865 million in the first quarter, and is his best result since the second quarter of 2004.
The change in the top of the largest U.S. automaker is part of a plan launched in recent weeks by the GM board to present a clear picture of the management team of the company to investors at a time when plans Back to the stock markets. The bill also provides for the sale of some 61% of the automaker which is currently held by the U.S. government.
Whitacre recently announced its intention to make GM after the vehicle manufacturer to go public again. People familiar with the matter said GM's board made the decision without consulting with the U.S. government, which injected more than U.S. $ 50,000 million in the company to rescue it.
However, the output of Whitacre was announced amid an escalation in tension between the company and Washington, local officials said. The Obama administration wants that GM will soon launch a stock offering, perhaps even before the November elections, but the automaker has not committed to meet this deadline.
An IPO would interest penny stocks for dummies traders and would probably allow President Barack Obama the opportunity to say that the purchase of GM and Chrsyler Group LLC are working, especially in key election races in states that lean to the Republican Party where there is much skepticism about bailouts .
The government could sell at least U.S. $ 10,000 million shares in GM, according to a person familiar with the matter. Akerson, who since July 2009 has served as managing director of the firm specializing in the leveraged buyout firms Carlyle Group, is known as a strong manager, heavy-handed and often ruthless, qualities that seemed attractive to the group of House White in charge of lowering the automotive sector during the financial crisis. Obama was the one who recruited last summer to become part of GM's board.
Since joining the automaker has made its voices heard as one of the promoters of drastic changes, sources close to the executive. Akerson played a key role in the departure of former GM CEO Frederick "Fritz" Henderson, the sources said.
With the green light Akerson and GM can go ahead with its preparations to conduct a stock offering and to offer investors a clearer picture of the company's strategy.
GM could present this Friday to exchange authorities the necessary documentation to complete the IPO as a serious stocks for dummies IPO. Akerson has spent most of his career in the telecommunications sector.
On Thursday, Akerson said his management style is not radically different from its predecessor. The executive told the press that "shares the same vision."In the second quarter, revenue from the automaker rose 43% to U.S. $ 33,000 million, thanks to a 50% increase in global vehicle production, aided by the end of the recession in the U.S. and developing economies.
Its North American division achieved operating earnings of U.S. $ 2,177 per vehicle produced. However, its international operations are not generating the same profits: the company earned only U.S. $ 562 for every car sold in South America, Asia and other international markets. Its European operations lost $ 483 per vehicle.
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