GM to Share its Finances with Potential Investors
General Motors Co. today is hosting an invitation-only briefing on its financial plans, ahead of the automaker's planned stock offering, reported The Detroit News.
GM isn't planning any major announcements at the session, at its Warren Tech Center. But executives will offer detailed financial information on its business, industry trends and plans -- especially in foreign markets.
About 200 people, most from the financial community, are expected to attend.
They are to hear presentations from many GM execs, including Chief Financial Officer Chris Liddell.
The meeting is "monumentally important" for GM, in convincing potential investors that it will be a sound investment, said Maryann Keller, an auto analyst and head of Maryann Keller & Associates in Stamford, Conn.
GM must give potential investors a clear picture of its long-term plans, including investments and how it will boost its market share. Executives also need to convince investors that the auto company will generate sufficient cash to fund new vehicle investments, she said.
"They need to tell us how, in a brutally competitive automotive world, they're going to earn a return on an investment," Keller said.
GM Chairman and Chief Executive Ed Whitacre will speak, and Tom Stephens, vice chairman of global product operations, will update investors on the company's product planning.
GM stock could be offered as early as October, and raise $20 billion as the U.S. Treasury Department divests 20 percent, or more, of its 61 percent stake. GM is still working on its stock registration.
GM plans to more regularly update the financial community as it works to complete its initial public offering registration statement.
The meeting will serve as a coming out party of sorts for Liddell, and could answer prospective investor questions about whether he is a worthy candidate to succeed Whitacre, Keller said.
"This is his first major in-person presentation to a very, very large audience," she said. "One question any prospective investor would ask is 'Who's going to run the business in the future?' At some point, when Mr. Whitacre declares he's finished and his work is done, do they have his replacement inside the company?"
More Industry

Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
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 →