MENU
SEARCH
General Motors Co. delayed until next week Friday's planned filing of paperwork for an initial public stock offering, amid scrutiny of the company's new top boss, The Detroit News reported.
Potential investors are focusing on Daniel Akerson, a GM board member with a financial and telecommunications background, who will replace Chairman and CEO Ed Whitacre Jr. His surprise appointment came Thursday.
Akerson's immediate and huge task will be to line up investors to buy GM stock and convince them he has the skills to run the automaker effectively, even though he is an industry outsider.
IHS Automotive analyst Rebecca Lindland said GM likely needed to delay the filing of federal paperwork for its initial public offering (IPO) of stock to update the document's outline of GM management.
It "highlights the fact that this (leadership) change is fairly sudden," she said.
"Eventually, everybody will probably feel good about this change. I don't know if that has sunk in yet."
Akerson has his work cut for him to sell the management change to investors, Lindland said, but his rise hasn't dramatically altered the picture.
"People who weren't going to buy into the IPO still aren't going to and people that are confident enough to buy probably haven't changed their minds," she said.
Whitacre made no secret of the fact that he didn't plan to stay at GM for a long time, but Thursday's announcement that he would step down Sept. 1 was unexpected. Akerson, 61, a managing partner at private equity firm Carlyle Group, had not been mentioned as a candidate to succeed Whitacre, 68.
Analysts said the management change, announced at the end of Thursday's upbeat second-quarter earnings presentation, seemed designed to reassure potential investors.
Akerson's strong financial experience will lend him credibility as he prepares to take the lead role in selling GM to potential investors in a "road show" this fall.
At Carlyle, Akerson helped oversee a portfolio of 900 real estate and corporate investments, including such diverse companies as Hertz, Dunkin Donuts, AMC Entertainment, Hawaiian Telecom and Harrah's Entertainment. He has taken an active role as a member of GM's board since his appointment by the Treasury Department in 2009.
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →
A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.
Read More →
Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.
Read More →
U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.
Read More →
Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.
Read More →
Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
Read More →
Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.
Read More →
The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.
Read More →