GM IPO Should Be Delayed to Maximize U.S. Return, Nader Says
President Barack Obama should suspend General Motors Co.’s initial public offering to ensure the best return for U.S. taxpayers, Ralph Nader and three other consumer advocates said in a letter, Bloomberg reported.
GM is seeking to raise as much as $10.6 billion in the sale of shares, according to a Nov. 3 regulatory filing. The IPO, which may occur as early as Nov. 17, would reduce the Treasury Department’s investment in the Detroit-based company to 43 percent from 61 percent, according to the filing.
“The government obviously has a serious fiduciary duty to taxpayers to obtain the best possible return on our investment in GM,” Nader wrote today in the letter to the Obama administration. The letter was also signed by Joan Claybrook, president emeritus of Public Citizen; Clarence Ditlow, executive director of the Center for Auto Safety; and Public Citizen President Robert Weissman.
The government may lose $4.9 billion in the share sale, they said, citing press reports. The Treasury will seek to recoup taxpayer losses in future offerings at higher prices.
Investor prudence “counsels for maintaining the government’s current share and delaying a sell off so that the government can capture likely improved returns in the future,” they said.
They also pointed to the need to protect jobs and prop up the U.S. economy by influencing GM investment decisions. They cited reports that foreign manufacturers and sovereign wealth funds are considering purchases of GM shares.
The U.S. stake in GM could be used to promote policy changes to deal with climate change, through backing dramatically increased investments in electric cars “and other transformational technologies,” they said.
More Industry

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →