Despite rapid advances in automobile technology in recent decades, the manner in which manufacturers distribute their products to the end customer has remained relatively unchanged for nearly one hundred years. New vehicles in the United States are almost exclusively distributed
General Motors took the first step toward a new public offering last week with the filing of a massive Form S-1 with the SEC. While exact terms of the offering are not known yet, Barron’s has estimated that the IPO transaction may be worth $15 billion and would result in a market capitalization of $60 billion. With the United States Treasury owning over 60 percent of the company, the IPO represents a partial exit strategy for Uncle Sam and an opportunity for GM to shed the “Government Motors” stigma that has negatively impacted consumer perceptions. However, aggressive pension plan assumptions could still sink the company in the long run. Read this article for more information.
General Motors has announced a starting price of $41,000 for the Chevrolet Volt, the company’s first move into the nascent market for electric vehicles. Buyers may be eligible for a federal tax credit of up to $7,500. The Volt is advertised to offer “up to 40 miles” of driving on an electric charge with a range extension feature that uses a gasoline generator to provide additional electric power for up to 300 more miles. Read this article for more information.