General Motors has been receiving a bunch of positive press as of late. Just over a year since the Detroit automaker came out of bankruptcy, it has become a leaner and meaner auto-making machine and has relisted its shares on major world stock exchanges with one of the world’s largest IPOs of all time.
However, just four months after filing for the IPO industry analysts are expressing concern over the company’s new CEO Dan Akerson, who seems to be unfamiliar with the car market.
Critics say Akerson, who is former telecommunications executive, is surrounding himself with executives from similar backgrounds and is focusing too much on cost-cutting and relying heavily on incentives. Those incentives and rebates artificially inflate sales figures at the expense of profits and brand image.
Also adding to the concern of analysts the sudden departure of GM’s CFRO Chris Liddell is another red flag. After barely a year on the job, Liddell led GM through its record $23 billion IPO last November. Liddell is being replaced by another Dan, Dan Ammann, who is currently GM’s vice president, finance and treasurer.
– By: Omar Rana