GM Shares Return to $33 Initial Public Offering
For the first time in more than two years, the stock price for General Motors has passed its $33 initial public offering, thanks to the automaker preparing to introduce redesigned full-size pickups. The company will be introducing 20 new vehicles, including the Chevrolet Silverado and GMC Sierra, hoping to rebound from an 88-year low market share in 2012.
Since the industry bailout in 2009, started calling GM “Government Motors,” and many politicians have made their voices clear about the issue. However, current GM shares are on the up, with the automaker expecting improvements over the year. GM has been in talks with labor unions to cut back hours at its main plant in Germany to lower production, helping its bottom line. Full-size pickups have been the main source of profit for the company, along with its main U. S. competitors.
Adding to the higher share price is the announcement that was made last December that the company would purchase 200 million shares back from the U.S. Treasury, with the government planning to sell its remaining shares within the next 15 months. As of April 1, the Treasury only had a 16.4 percent stake in the company.
Source: Automotive News
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