“I expected a science fair experiment. But this is a moonshot.”
~Car of the Year Consultant Judge Chris Theodore
The Wall Street Journal says that this week’s General Motors (GM) Initial Public Offering could be the largest in history, but is complicated by the $40 billion the automaker owes the US Government, which will be seeking to sell its stock as well:
Earlier Tuesday, GM confirmed it would raise the expected price for shares sold in its IPO to a range of $32 to $33 from the previous $26 to $29. GM also plans to sell up to $4.6 billion of preferred stock, up from $3 billion previously planned. The IPO will be priced Wednesday after the U.S. stock markets close and the shares will start trading Thursday.
…At the new level, the U.S. government would raise around $13 billion, including the overallotment, at the midpoint of the higher price range. That’s up from $8.3 billion at the lower price and share number.
You can Read on to make sense of the issues surrounding the IPO. One thing that will doubtless fuel the IPO is the fact that yesterday Motor Trend named the Chevy Volt 2011 Car of the Year. The award is the biggest in the auto industry, and Motor Trend says that the Volt has some of the most advanced engineering ever seen in an American car and writes:
In the 61-year history of the Car of the Year award, there have been few contenders as hyped — or as controversial — as the Chevrolet Volt. The Volt started life an Old GM project, then arrived fully formed as a symbol of New GM, carrying all the emotional and political baggage of that profound and painful transition. As a result, a lot of the sound and fury that has surrounded the Volt’s launch has tended to obscure a simple truth: This automobile is a game-changer.
You can read much more about their decision and watch this video summarizing the selection:
Photo Credit: 2011 Chevrolet Volt in Production by ibmphoto24