After a few years, who will be the next owner of GM?

[battyr]

We know that the GM's current management can't run an auto company. The government can't run any company competitively. Any union's control is a conflict of interest.

 

After 2 years of no profit, who will be taking ownership of GM.

 

Could it be Fiat, Magna, Toyota, or the Chinese?

[TomServo92]

I believe they'll emerge from bankruptcy as an indepedent albeit smaller company. Whether they become successful and stay indepedent after that will decide if another auto maker comes into the picture.

[battyr]

I believe they'll emerge from bankruptcy as an indepedent albeit smaller company. Whether they become successful and stay indepedent after that will decide if another auto maker comes into the picture.

 

So will the govenment and union take it public and sell their shares to the public? Who would buy them?

 

I would only invest into GM if I knew they had good management. From what I know, I would not touch them unless I knew that it was run by a good manager who had total contol and who could make any changes needed.

[TomServo92]

So will the govenment and union take it public and sell their shares to the public? Who would buy them?

 

I would only invest into GM if I knew they had good management. From what I know, I would not touch them unless I knew that it was run by a good manager who had total contol and who could make any changes needed.

 

That would be my guess and I agree about needing a change at the top to make the stock desirable even at a bargain basement price.

[jpd80]

So will the govenment and union take it public and sell their shares to the public? Who would buy them?

 

I would only invest into GM if I knew they had good management. From what I know, I would not touch them unless I knew that it was run by a good manager who had total contol and who could make any changes needed.

Part of the deal is that GM stays as a private company for the first 6 to 18 months,

meaning that none of the stake holders can sell their stock in that time.

 

I guess the government wants the new GM to build up steam so that the

stock value is as high as possible before they float the company.

 

It's actually a pretty smart idea, getting GM off the market's face for the next 12 months,

a re emerging GM can be touted to the extreme and lots of investors will want back in.

Edited May 31, 2009 by jpd80

[taxman100]

I predict they will live off of the government teat for years to come. The reason is no one is going to buy the government mandated crap from a substandard socialist enterprise that serves political purposes first, and then it's customers.

[RichardJensen]

Likely there will be an IPO. The UAW undoubtedly does not want the pension fund trust for GM employees (blue and white collar) to be funded entirely by GM equity.

[LSFan00]

2 options here;

 

1. Things go well over the next six months to a year, with improving product sales, customers undaunted by ownership/bankruptcy news.

 

2. Not 1. Things go very poorly, constant bad news/supplier collapses/mismanagement by political committee works worse than what has been happening for 15 years.

 

Gov't won't sell if 1 happens as they'll find the "timing isn't right" and the managers want continued control/credit. Gov't won't sell in 2 because first of all no one will buy a minority position from the gov't as the company will still be getting "rescued" with lot's of strings/oversight, and second of all, the "fixing" will only have resulted in more "breaking" which the market today values at less than what, $500M worth of recyclable paper stock shares?

 

That's the problem with the socialized bailout we are watching happen. It cannot, by design, end well, if at all.

[Cougarpower]

Imaging if Opel comes and buy GM at the end

[snooter]

no it cannot last and the history of employee owned companies is dismal at best..i would love to see yoda buy off the engineering department and just waste away the rest of it...still some smart minds at GM..problem always was from paper to reality the vehicle turned into a complete unwanted piece of crap..last good product from GM...i say the 72 olds 442...swivel seats in 73..yuck

[battyr]

Imaging if Opel comes and buy GM at the end

 

Opel in now owned 35% by the Russian government. 35% GM, 35% Sberbank (60.25% owned by Central Bank of Russian Federation) and only 20% Magna.

 

This would be scarry had GM not gone bankrupt.

[battyr]

GM is now too small. To survive, they will need to merge with a health Auto company with resources in Europe. The original problem was caused because no share holder had control over the company. Note that GM's top executives are still running the company. Even Wagoner got a huge buyout to quit.

 

GM will need the same structure as companies like Ford and Fiat. Be a public company with many share holders, but have one family, individual, or company that has contol of the majority of shares.

[battyr]

Had H. Ross Perot been able to take control of GM in the 80's, it might have been Ford in bankruptcy instead.

[NickF1011]

no it cannot last and the history of employee owned companies is dismal at best..

 

I don't know about that. The company my dad worked for for the better part of 40 years is employee-owned and is one of the most successful and profitable construction companies in the world.

[630land]

But Perot was kicked out, so :P:P:P

 

China will buy the rest of GM, period.

[LSFan00]

Heh, more irony alert; the Chicoms may well wind up buying the remainder of "good GM" in a few years ($200B in "bailouts" down the road), and will then enforce the "non-compete" with Opel/GM Europe to stay out of the US while sending remaining manufacturing to China!

 

The American Socialists can't fight the world labor market forever! I still look forward to buying a RWD Chinese-built Buick.