KLAS-TV Channel 8 News Las VegasGeneral Motors readies to sell… itself, with IPO

After the most publicized federal bailout in American history, General Motors Corp. was saved from dissolution last year, giving the federal government a majority holding in the huge industrial company.

Now, General Motors would like to get out of from under government ownership -- which can be a restrictive force on aspects of its business, including, most markedly, executive pay -- so the corporation is contemplating a giant initial public offering (IPO), perhaps as early as this fall.

The corporation that teetered on the edge of the abyss in 2009 has been rejuvenated by chief executive Ed Whitacre Jr. He hasn't just cleaned up the balance sheet: The former telephone company exec has given the corporation new marching orders while transforming its corporate culture. Now, GM is putting its best foot forward by announcing that it will introduce some 70 new or upgraded models by 2014, promoting its success in the rapidly growing Asian markets and pointing out that even in the struggling U.S. market, its sales are up while its discounts are down. GM has quite literally got its house in order for the IPO, and most industry experts are impressed by the progress, especially on the product front. 

But that doesn't mean that the IPO of stock in the new GM will go without a hitch. A significant threat to the success of the offering is the fragility of the U.S. economic recovery. Unemployment remains high, and there seems to be little progress in getting it down under 9 percent -- much less getting it to a more palatable 6 or 7 percent. Further, the U.S. stock market, which made gains earlier in the year, has retreated significantly lately. The market has been shivering on fears that the combination of European economic woes and the continuing dreary employment picture here will spur a second dip in this already severe recession, and in circular fashion, a shaky stock market won't give businesses the confidence that is required for them to expand and push down unemployment. So even though GM is enjoying success in overseas markets like China, if the U.S. stock market continues its losing streak, GM's plans for an imminent IPO might have to take a time-out. 

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