GM Stock Hits New Lows, Company in Turmoil
Remember that vaunted General Motors recovery ushered in by President Obama’s bold bailout program?
Well, not so much.
In June 2009, GM filed for Obama-managed bankruptcy, costing the taxpayer some $50 billion. The vast majority of that cash was never paid back by GM. In November 2010, GM issued a new initial public offering at a price of $33 per share. Today, GM stock is trading at approximately $19.36, down about 40% from its initial price.
And the executive turmoil in the company is reaching fever pitch. Opel, a majority-owned subsidiary of GM, dumped CEO Karl-Friedrich Stracke about two weeks ago. GM Vice Chairman Steve Girsky replaced him. Analysts immediately claimed, “GM appeared to be panicking as the change comes so soon after a turnaround plan for the struggling Opel was approved and a replacement was not named.” Another analyst stated, “The timing of today’s announcement bodes poorly for the condition of GM’s European business.” Then, Opel’s new design chief Dave Lyon was thrown out of the building before even beginning his job. Within the week, global marketing honcho Joel Ewanick got tossed.