Bloom wants to see GM IPO in 2010

Ron Bloom, President Obama’s car czar, expects GM to offer an IPO in the fourth quarter of 2010, he said in an interview this week. The government owns a 61 percent majority stake in GM as a result of their bankruptcy restructuring, but has agreed to not touch their equity. Bloom has said however, that the company is obligated to the government to make their best efforts to make an IPO happen.

Chrysler however, is further away from being in the position to make an IPO happen, and Bloom is OK with that. Fiat CEO Sergio Marchionne has set a timetable that predicts a Chrysler IPO sometime in 2011.

GM has some work to do however, before being in a position to offer an IPO. They must convince the public that they are a stable, profitable company, and that they will continue to be so. So far GM has been performing well and sales have been increasing and they are preparing to start paying back their $6.7 billion government loan ahead of time.

– By: Stephen Calogera

Source: Detroit News

Chris Chin

Chris Chin is the Editor-In-Chief of egmCarTech and is a regular contributor to Automobile Magazine.

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