GM generates $20bn in triumphant return to stock market



GM made an impressive return to the stock market yesterday, raising over $20bn with its initial offering to investors.

That figure made it the largest share sale ever in the US and allowed President Obama to hail the success of the auto industry bail-out his administration masterminded.
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The General Motors saga
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GM generates $20bn in triumphant return to stock market
New Camaros and Firebirds sit in the yard in front of the General Motors plant in Boisbriand, Quebec. The last automobile manufacturing plant in Quebec produced its last car Aug. 27, 2002 to bring to a close its 37 year history.
A Pontiac GTO sits on a GM dealer lot in Berlin.
Chinese workers celebrate the first Buick Excelle sedan to roll off the production line of the South Plant at General Motor's new facility for Shanghai General Motors, in eastern Shanghai's Pudong district, China in 2005.
Industrial robots assemble a car at Shanghai General Motors factor. Shanghai General Motors new factory doubled the annual capacity of its flagship joint venture to 320,000 vehicles.

A pair of Chevrolet Tahoe SUVs are on display under palms and the dealer's sign at the Rydell Automotive Group General Motors dealership in the Van Nuys area of Los Angeles. General Motors Corp. reported, its sales slipped in May 2005 as customers continued to turn away from sport utility vehicles and trucks in favor of models from Japanese competitors. GM's car sales fell 1.6 percent, although the company's Cadillac brand enjoyed its best sales month in 12 years.

The 1953 Chevrolet Corvette, shown at General Motors World Headquarters in Detroit  joins the Ford Mustang and Chrysler minivans and offerings from BMW, Toyota and Volkswagen as the most influential vehicles of the past 50 years, according to a new listing from Consumer Reports in March 2003.

General Motors world headquarters in Detroit.

General Motors Corp. Chairman Roger B. Smith poses in front of a Geo Storm in the lobby of the company's headquarters in Detroit. Smith, who led General Motors Corp. in the 1980s, was the subject of Michael Moore's searing documentary "Roger and Me," died in Nov 2007.

Opel's general manager James F. Waters polishes the wind screen of the one millionth Record II manufactured at the General Motors daughter Opel car manufacturing site in Ruesselsheim, near Frankfurt am Main, West Germany, in 1976.

An undated file photo released by General Motors shows a 1968 Pontiac GTO. General Motors announced it's restructuring plan in April  2009, and it will include the discontinuation of the Pontiac brand, maker of the GTO,  one of America's first muscle cars and so popular it inspired the Beach Boys to immortalize it in song.

A 1965 Buick Riviera being modeled in Los Angeles. General Motors, the century-old automaker battered by the economic downturn, mounting debt and management problems, filed for bankruptcy in 2009, as part of an Obama administration plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

A Buick City employee works on one of the lines, in Flint, Mich. General Motors, the century-old automaker battered by the economic downturn, mounting debt and management problems filed for bankruptcy in 2009.

A 1965 Pontiac GTO
In this March 31, 1942 file photo, riders pose inside a Pontiac to illustrate a then news story about gasoline rationing.
Striking United Auto Workers union members walk a picket line outside the General Motors Corp. Buick City complex in Sept.1994 in Flint, Mich.

Bazooka rockets are made in the same General Motors plant as motors for civilian cars in Lansing, Mich., Jan. 22, 1952 during the Korean War.

The solar-powered vehicle SunRaycer by General Motors speeds its way to a new world record at GM's desert proving ground in Mesa, Ariz., on June 16, 1988. The car set a new world land speed record for a vehicle powered only by the sun by reaching a top speed of 48.712 miles per hour, beating its old record of 35.22 mph. The SunRaycer is driven by Molly Brennan, a car engineer with GM. The car weighs 350 pounds and carries 8,800 solar cells to power its two horsepower engine.

The 1949 Cadillac Coupe deVille, featuring a pillarless hardtop roof and a new high compression V-8 engine.
Three young girls check out the 1959 Buick LeSabre model, created by General Motors Styling and Buick Engineering, in 1958. The two-door car featured a low silhouette and tail fins.
Workers at the end of the assembly line at General Motors plant in Euclid, Ohio, put finishing touches at the cabs of Fisher Body Metal Station Wagons, August 10, 1950.
The General Motors unveiled the EV1 Parallel Hybrid vehicle at the North American International Auto Show in Detroit, in 1998.
General Motors Avenger torpedo bombers of the U.S. Navy's Third Fleet roar over the Vietnam coast en route to Saigon on Feb. 8, 1945.

Union members of the United Auto Workers have a sit-down strike at the General Motors plant in Flint, Michigan. The strike lasted for six weeks in January and February 1937.
In April 2004, General Motor Corporation produced the last Oldsmobile automobile. The Olds Motor Vehicle Co. wash started by Ransom E. Olds in Lansing, Michigan in 1897, but General Motors later acquired the company. In 2000 GM made the decision to end production of Oldsmobile due to sluggish sales.
In April 2004, General Motor Corporation produced the last Oldsmobile automobile. The Olds Motor Vehicle Co. wash started by Ransom E. Olds in Lansing, Michigan in 1897, but General Motors (GM) later acquired the company. In 2000 GM made the decision to end production of Oldsmobile due to sluggish sales.
One of Buick's 1949 models on display at General Motors' huge Transport Unlimited exhibit opening at New York's Waldorf Astoria Hotel, on 20 January 1949 is the distinctive two-door Super Sedanet. It had the latest in postwar styling - full length fenders with functional venti parts and full vision curved windshield. Its unique Dynaflow transmission is standard equipment on Roadmaster models and optional equipment on Super series cars.
Transport - Cadillac V16
Otis Chandler Cadillac V16
1941 Buick Special Convertible
1956 Chrysler New Yorker Deluxe Chevrolet Bel air
1971 Chevrolet Vega 2.3 litre coupe
Arthur and Gaston Chevrolet (with Moustaches) stand behind as Louis Chevrolet is at the wheel of a 1915 Cornelian
1968 Chevrolet Corvette Stingray Coupe
1960 Corvair 4 door sedan outside The Ambassador Hotel
The Chevrolet Corvair at the Brussels Motor Show, Belgium.
1953 Buick Skylark 50th anniversary model
Chrysler New Yorker Deluxe Chevrolet Bel air
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Mr Obama said: "Today, one of the toughest tales of the recession took another big step toward becoming a success story.

"American taxpayers are now positioned to recover more than my administration invested in GM, and that's a good thing."

The US government was forced to pore almost $50bn into GM when the carmaker became crippled by bankruptcy in 2008.

Taxpayers money allowed the firm time to restructure its business in an 18-month overhaul before returning to profit for the first time since 2004.

Yesterday's initial public offering (IPO) saw shares being traded at around $33 – an improvement on the $26 price GM had originally set.

While the manufacturer's return to the New York Stock Exchange will allow the US government to reduce its 61 per cent stake in the company to around 33 per cent, it is considered unlikely that the taxpayer will see a return on their investment.

Although $13.6bn was recovered yesterday, the US Treasury would need to sell the remainder of its stock for almost $57 a share just to break even.

37 PHOTOS
The General Motors saga
See Gallery
GM generates $20bn in triumphant return to stock market
New Camaros and Firebirds sit in the yard in front of the General Motors plant in Boisbriand, Quebec. The last automobile manufacturing plant in Quebec produced its last car Aug. 27, 2002 to bring to a close its 37 year history.
A Pontiac GTO sits on a GM dealer lot in Berlin.
Chinese workers celebrate the first Buick Excelle sedan to roll off the production line of the South Plant at General Motor's new facility for Shanghai General Motors, in eastern Shanghai's Pudong district, China in 2005.
Industrial robots assemble a car at Shanghai General Motors factor. Shanghai General Motors new factory doubled the annual capacity of its flagship joint venture to 320,000 vehicles.

A pair of Chevrolet Tahoe SUVs are on display under palms and the dealer's sign at the Rydell Automotive Group General Motors dealership in the Van Nuys area of Los Angeles. General Motors Corp. reported, its sales slipped in May 2005 as customers continued to turn away from sport utility vehicles and trucks in favor of models from Japanese competitors. GM's car sales fell 1.6 percent, although the company's Cadillac brand enjoyed its best sales month in 12 years.

The 1953 Chevrolet Corvette, shown at General Motors World Headquarters in Detroit  joins the Ford Mustang and Chrysler minivans and offerings from BMW, Toyota and Volkswagen as the most influential vehicles of the past 50 years, according to a new listing from Consumer Reports in March 2003.

General Motors world headquarters in Detroit.

General Motors Corp. Chairman Roger B. Smith poses in front of a Geo Storm in the lobby of the company's headquarters in Detroit. Smith, who led General Motors Corp. in the 1980s, was the subject of Michael Moore's searing documentary "Roger and Me," died in Nov 2007.

Opel's general manager James F. Waters polishes the wind screen of the one millionth Record II manufactured at the General Motors daughter Opel car manufacturing site in Ruesselsheim, near Frankfurt am Main, West Germany, in 1976.

An undated file photo released by General Motors shows a 1968 Pontiac GTO. General Motors announced it's restructuring plan in April  2009, and it will include the discontinuation of the Pontiac brand, maker of the GTO,  one of America's first muscle cars and so popular it inspired the Beach Boys to immortalize it in song.

A 1965 Buick Riviera being modeled in Los Angeles. General Motors, the century-old automaker battered by the economic downturn, mounting debt and management problems, filed for bankruptcy in 2009, as part of an Obama administration plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

A Buick City employee works on one of the lines, in Flint, Mich. General Motors, the century-old automaker battered by the economic downturn, mounting debt and management problems filed for bankruptcy in 2009.

A 1965 Pontiac GTO
In this March 31, 1942 file photo, riders pose inside a Pontiac to illustrate a then news story about gasoline rationing.
Striking United Auto Workers union members walk a picket line outside the General Motors Corp. Buick City complex in Sept.1994 in Flint, Mich.

Bazooka rockets are made in the same General Motors plant as motors for civilian cars in Lansing, Mich., Jan. 22, 1952 during the Korean War.

The solar-powered vehicle SunRaycer by General Motors speeds its way to a new world record at GM's desert proving ground in Mesa, Ariz., on June 16, 1988. The car set a new world land speed record for a vehicle powered only by the sun by reaching a top speed of 48.712 miles per hour, beating its old record of 35.22 mph. The SunRaycer is driven by Molly Brennan, a car engineer with GM. The car weighs 350 pounds and carries 8,800 solar cells to power its two horsepower engine.

The 1949 Cadillac Coupe deVille, featuring a pillarless hardtop roof and a new high compression V-8 engine.
Three young girls check out the 1959 Buick LeSabre model, created by General Motors Styling and Buick Engineering, in 1958. The two-door car featured a low silhouette and tail fins.
Workers at the end of the assembly line at General Motors plant in Euclid, Ohio, put finishing touches at the cabs of Fisher Body Metal Station Wagons, August 10, 1950.
The General Motors unveiled the EV1 Parallel Hybrid vehicle at the North American International Auto Show in Detroit, in 1998.
General Motors Avenger torpedo bombers of the U.S. Navy's Third Fleet roar over the Vietnam coast en route to Saigon on Feb. 8, 1945.

Union members of the United Auto Workers have a sit-down strike at the General Motors plant in Flint, Michigan. The strike lasted for six weeks in January and February 1937.
In April 2004, General Motor Corporation produced the last Oldsmobile automobile. The Olds Motor Vehicle Co. wash started by Ransom E. Olds in Lansing, Michigan in 1897, but General Motors later acquired the company. In 2000 GM made the decision to end production of Oldsmobile due to sluggish sales.
In April 2004, General Motor Corporation produced the last Oldsmobile automobile. The Olds Motor Vehicle Co. wash started by Ransom E. Olds in Lansing, Michigan in 1897, but General Motors (GM) later acquired the company. In 2000 GM made the decision to end production of Oldsmobile due to sluggish sales.
One of Buick's 1949 models on display at General Motors' huge Transport Unlimited exhibit opening at New York's Waldorf Astoria Hotel, on 20 January 1949 is the distinctive two-door Super Sedanet. It had the latest in postwar styling - full length fenders with functional venti parts and full vision curved windshield. Its unique Dynaflow transmission is standard equipment on Roadmaster models and optional equipment on Super series cars.
Transport - Cadillac V16
Otis Chandler Cadillac V16
1941 Buick Special Convertible
1956 Chrysler New Yorker Deluxe Chevrolet Bel air
1971 Chevrolet Vega 2.3 litre coupe
Arthur and Gaston Chevrolet (with Moustaches) stand behind as Louis Chevrolet is at the wheel of a 1915 Cornelian
1968 Chevrolet Corvette Stingray Coupe
1960 Corvair 4 door sedan outside The Ambassador Hotel
The Chevrolet Corvair at the Brussels Motor Show, Belgium.
1953 Buick Skylark 50th anniversary model
Chrysler New Yorker Deluxe Chevrolet Bel air
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