Where are the lemon laws when you need them?
Here’s a shocker: even a reconstituted company that’s stuck with the UAW doesn’t do very well.
GM had been showing some life, largely on the back of fuel guzzling pick-ups and SUVs. But, increasing gas prices have (again) slowed that market down.
Surprise, surprise, surprise.
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Excerpted from WSJ: U.S. Hurries to Sell GM Stake, April 19, 2011,
The U.S. government plans to sell a significant share of its remaining stake in GM. this summer despite the disappointing performance of the auto maker’s stock.
A sale within the next several months would almost certainly mean U.S. taxpayers will take a loss on their $50 billion rescue of the Detroit auto maker in 2009.
To break even, the U.S. Treasury would need to sell its remaining stake — about 500 million shares—at $53 apiece.
GM closed at $29.59 in trading Tuesday, hitting a new low since its $33-a-share November initial public offering.
Analysts say that GM shares have been hurt by rising fuel prices, industry production disruptions and management turnover.
GM share price could become further depressed after investors holding bonds of the now-bankrupt “old-GM” receive warrants and stock for existing GM shares. That will happen April 21.
The Homa Files 