General Motors recently withdrew a request for loan guarantees of €1.8bn to help it raise crucial financing from the debt markets. The explanation from GM is that it "now it now had the firepower to finance a restructuring of the company without outside support."
This is a positive sign for the company, which a little more than a year ago was in the face of total collapse. And although GM's current poor credit rating would have meant that borrowing the money without public-sector support would have prohibitively expensive, it is GM's recently improved financial strength that has served as a catalyst for this decision, hinting at a strong start for GM's upcoming IPO.
GM is currently undergoing restructuring, but will come out of it as a leaner machine. Because the UAW will now own roughly 20% stake in the newly formed entity, the UAW will have more responsibility in keeping GM in alignment with its major competitors.
GM is currently undergoing restructuring, but will come out of it as a leaner machine. Because the UAW will now own roughly 20% stake in the newly formed entity, the UAW will have more responsibility in keeping GM in alignment with its major competitors.
General Motors announced that it would begin selling vehicles in California through eBAY. Unfortunately, this still doesn’t change the hegemony of dealerships and their control of the local markets, but it does mark a step in the right direction.
