GM files for initial public stock offering
Various cars sit in the lot for sale at a General Motors used car dealership at the Troy Motor Mall in Troy, Mich.
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BILL RADKE: General Motors plans to shed its government ownership and start trading on public stock markets by the end of this year. The automaker filed registration papers yesterday for an initial public stock offering.
This could be the second biggest IPO in history, as Marketplace's Gregory Warner reports.
GREGORY WARNER: The stock sale expected later this year could raise $10-15 billion for GM or more. The price of the IPO depends on what investors think of the financial health reports the company released yesterday. GM hopes the sale will reduce the U.S. government's share from 61 percent to under 50.
MARK FULTHORPE: It proves that there are still opportunities in this sector.
Mark Fulthorpe is an analyst at IHS Automotive. The size of the stock sale, he says, says something about the auto industry. It's up since last year. And about the IPO market, which limped along during the recession.
But Fulthorpe says GM deserves most of the credit.
FULTHORPE: You know, we are seeing finally the fruition of their manufacturing strategy.
The company streamlined factories, trimmed dealerships and renegotiated with unions. It focused on building cars that people want to buy. Having its debt wiped out during bankruptcy also helped. The company's second-quarter profits, reported last week, were $1.3 billion.
In Philadelphia, I'm Gregory Warner for Marketplace.