GM Stock Offering May Boost Consideration From Auto Shoppers, Moody's Says
General Motors Co.’s initial public offering last week may help the largest U.S. automaker get consideration from car and truck buyers, according to Moody’s Investors Service.
“U.S. consumers who don’t know anything about over- allocation options or the need for strong liquidity in a cyclical industry knew that something exceptionally good happened to GM last week,” Bruce Clark, an analyst, wrote today in a research note. “That knowledge makes it more likely that they will consider buying a GM vehicle and possibly buy one. That’s good for the company’s credit quality.”
The financial benefits of the IPO, which raised more than $20 billion selling common and preferred stock, were “largely anticipated and are already reflected in the company’s rating,” Clark wrote.
Moody’s assigned GM a Ba2 rating, the second level below investment grade, on Oct. 11. New York-based Moody’s said it has a stable outlook on the Detroit-based automaker.
Deliveries by GM in the U.S. rose 6.6 percent to 1.82 million vehicles through October, compared with an 11 percent gain for the industry, according to researcher Autodata Corp. in Woodcliff Lake, New Jersey. Sales of cars and trucks by Chevrolet, GM’s volume brand, increased 18 percent, helped by the Silverado pickup and Equinox sport-utility vehicle.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →