Ed Whitacre | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘ed whitacre’

GM IPO Could Determine Future Electric Car Strategy

Maker needs funds to invest in Volt follow-up effort.

by on Oct.20, 2010

While GM has scuttled the Cadillac Converj project, the maker is working up a number of other possible battery car programs, insiders report.

Key decisions about General Motors’ long-term electric vehicle strategy could depend on the success – or failure – of the maker’s upcoming IPO.

Though the maker has yet to publicly define its plans, the initial public offering of the “new” GM’s stock is expected to raise billions of dollars in capital.  A large chunk of that money is anticipated to go to help repay the federal government for its 2009 bailout of the then-bankrupt automaker.  But billions more, observers believe, will be pumped into the corporate treasury, at least in part to help fund product development efforts.

http://www.thedetroitbureau.com/about/subscribe

Free Subscription!

Company officials, including new GM CEO Dan Akerson, have said that coming up with world-class product is essential to the corporation’s turnaround.  But the electric vehicle program, in particular, could become particular crucial as the overall auto industry presses into what has been dubbed “electrification.”

(more…)

GM Scrambles In Wake Of Whitacre’s IPO Gaffe

Former CEO hints at share price, stock sale plans potentially violating SEC rules.

by on Oct.18, 2010

Why is this man smiling? Outgoing GM Chairman Ed Whitacre predicts a successful GM IPO - and sends the automaker scrambling.

Comments by General Motors Chairman and former CEO Ed Whitacre offer an insight into the maker’s planned IPO – but have sent the maker scrambling to avert a potential problem with federal regulators.

The Texas executive, now winding down the role he took as GM emerged from bankruptcy last year, suggested the maker would offer shares for somewhere between $20 and $25 when it stages its long-anticipated initial public offering late next month.  That and other comments by Whitacre could create a legal nightmare for GM because it is in the middle of the so-called “quiet period” between the filing for an IPO and the actual stock sale.

http://www.thedetroitbureau.com/about/subscribe

News Now!

In an updated filing with the Securities and Exchange Commission, GM tried to avert any problems by saying it has neither set a price for the planned share offering, nor has a specific timeline in mind for setting share prices.

(more…)

GM’s Akerson Goes Into Attack Mode

New CEO a proud and aggressive Republican, he reveals.

by on Sep.09, 2010

New CEO Dan Akerson wants GM in attack mode.

Anyone who expected new General Motors CEO Dan Akerson to take a low-key approach to running the company will likely be in for a surprise.  The new chief executive, who took the reins at GM barely a week ago, has already come out swinging, warning that the carmaker has to “get better,” and “be on the attack.”

Akerson also made it clear that despite the $50 billion in federal aid approved largely by the Obama Administration, he is a died-in-the-wool Republican.

The chief executive, a graduate of the U.S. Naval Academy, held his first meeting with company employees alongside Ed Whitacre, who stepped down as CEO and handed control of GM to Akerson on September 1st.  Whitacre stays on as Chairman of the Board until December 31st, when Akerson gains that title, as well.

http://www.thedetroitbureau.com/about/subscribe

Your Inside Source!

“We need to be on the attack,” Akerson said during the session, which was telecast to employees around the company.  Noting that GM has made significant gains since it emerged from bankruptcy in July 2009, the new CEO stressed that, “We’re good right now, but we’ve got to get a lot better.”

(more…)

GM’s Fired Fritz Henderson Surfaces at Sunoco

Henderson will become Chairman and CEO of SunCoke Energy.

by on Sep.07, 2010

Then GM CEO Fritz Henderson announces the Chevrolet Volt, the electric car designed to put oil companies out of business.

Sunoco, Inc. has announced that Frederick A. “Fritz” Henderson has joined the company as a senior vice president to help prepare for a previously announced separation of SunCoke Energy from parent Sunoco.

Coke is a key ingredient in steel, of course, a material that auto companies are large purchasers of during their often contentious relationships with suppliers.

Sunoco said last June that  it would separate SunCoke Energy from itself as part of a well-worn Wall Street strategy “designed to unlock shareholder value.” This type of financial engineering ploy clearly didn’t work in the now notorious auto industry captive  component maker spinoffs – GM’s Delphi and Ford Motor’s Visteon. Both transactions ultimately resulted in bankruptcies and costly shareholder losses.

SunCoke facilities in the U.S. have the capacity to manufacture approximately 3.67 million tons of metallurgical coke annually – roughly 25% of domestic production. Sunoco also has an equity interest in a 1.7 million tons-per-year coke-making facility in Vitoria, Brazil.

(more…)

“Playboy” to “Leader” – New CEO Akerson at GM

Fourth GM CEO in two years brings very different style to job.

by on Sep.01, 2010

After joining the GM Board following its 2009 bankruptcy, Dan Akerson takes over, today, as its new CEO.

Those who work on the 38th floor of Detroit’s Renaissance Center can be forgiven for feeling like the revolving door has been stuck in overdrive.  The senior management offices for General Motors have seen a steady stream of new faces since the beginning of 2009, virtually every top position having changed – at least once – since the giant automaker began sliding towards bankruptcy.

But nowhere has that change been more apparent – or frequent – than in the top spot, where long-time chief executive Rick Wagoner was fired by the Obama Administration, in March 2009, as part of its $50 billion bailout of the troubled carmaker.  Today, the fourth CEO in barely two years takes the reigns from Ed Whitacre, the lanky Texan and former AT&T Chairman, who announced his sudden departure last month after laying out the plans for GM’s upcoming IPO.

http://www.thedetroitbureau.com/about/subscribe

Free Subscription!

The new CEO is, to some, an unlikely figure to be running the car company.  A graduate of the U.S. Naval Academy, Dan Akerson is not your classic car guy.  In fact, he’s had no experience at all with the auto industry other than overseeing several companies linked to the car business when Akerson served as managing director of the powerful private equity firm, The Carlyle Group.

(more…)

“Government Motors” Ready For Its IPO

But GM still not revealing date of stock sale, nor price.

by on Aug.18, 2010

Why is this man smiling? Whitacre announces the GM IPO but hands the difficult work to his successor.

GM is taking the first crucial step to get the government out of what critics have dubbed Government Motors.  Just moments before the final bell rang on Wall Street, the automaker announced it had filed registration papers with the Securities and Exchange Commission.

The maker plans to offer investors both common and preferred Class B shares as part of a gradual sell-off of the more than 350 million shares – equally to 60.8% of GM equity – now held by the U.S. Treasury.  The company also plans to begin selling off the stake held by the Canadian and Ontario governments and will be listed on both the New York and Toronto Stock Exchanges following the IPO.

http://www.thedetroitbureau.com/about/subscribe

Breaking News!

GM management has come under heavy pressure from the White House to stage the Initial Public Offering, the only way the White House can recover more than $40 billion invested by U.S. taxpayers following the maker’s 2009 bankruptcy.  But company officials had, until today, refused to lock down a specific date for the offering – which many anticipated would be staged in advance of the upcoming mid-term Congressional elections.

(more…)

Breaking News: GM Finally Files For IPO

by on Aug.18, 2010

The first step is taken to get the Government out of Government Motors.

Just moments before Wall Street called it a day, Wednesday afternoon, General Motors announced it was filing its much-anticipated and unexpectedly delayed IPO.

The move, which must still be formally approved by the Securities and Exchange Commission, as well as Canadian regulators, will begin the process of selling off the majority 60.8% stake in the troubled automaker held by the U.S. Treasury – as well as a chunk of stock now in the hands of the Canadian and Ontario governments, which also helped bail out GM as it emerged from bankruptcy last year.

The big question is whether investors on Wall Street and the Toronto stock exchange will respond favorably to the offering, the only way the three government bodies will be able to recover the tens of billions of dollars invested by taxpayers to prop up the reborn GM.

TheDetroitBureau.com will have further updates shortly.

GM CEO Whitacre Steps Down in September!

Board member Dan Akerson takes over; Government appointed Whitacre remains as Chairman of Board until year end.

by on Aug.12, 2010

Another outsider takes over as General Motors CEO.

It was always his intent to move on the moment General Motors Company was back on its feet,  GM CEO Ed Whitacre, 68, said today at the close of a press conference discussing second quarter results. So with GM’s second straight quarterly profit just announced,  Whitacre will resign as CEO of the U.S.’s largest automaker, effective September first.

Taking Whitacre’s place is board member Dan Akerson, 61, who joined last year as GM was emerging from bankruptcy in July.

Whitacre will stay on as Chairman of the Board until year end, at which time Akerson will also assume that post.

“My goal in coming to General Motors was to help restore profitability, build a strong market position, and position this iconic company for success,” said Whitacre. “We are clearly on that path.  A strong foundation is in place and I am comfortable with the timing of my decision.”

(more…)

GM’s Whitacre Wants To Sell Off Government’s Stake ASAP

But CEO won’t discuss timetable for IPO.

by on Aug.05, 2010

GM wants to sell off the government's 61% stake "as soon as possible," says CEO Ed Whitacre.

General Motors is working on its initial public offering, but the only timeframe Chairman and President Ed Whitacre would offer for the IPO, during an appearance Thursday, was “as soon as possible,” in his latest non-news statement.
“It’s number one on our list,” Whitacre, who also serves as GM’s chief executive officer, told the Management Briefing Seminars in Traverse City.  “We don’t like this label of ‘Government Motors.’ It turns customers off and it turns us off.”

Late last month, rumors began to circulate that GM would set out details of his planned stock offering around August 16th, following the release of its second-quarter earnings – about which Vice Chairman Steve Girsky today said analysts would be “encouraged.”

It is anticipated that the offering will be timed just before the upcoming mid-term Congressional elections, though neither Girsky nor Whitacre would confirm that timing. Ruling Congressional Democrats, along with incumbent Republicans face the wrath of voters this fall.

Following his speech at the annual industry confab, Whitacre told reporters that GM must file a massive application with the Securities Exchange Commission, something it is now working on.  But when GM does issue its IPO, Whitacre said he doesn’t expect any backlash as an automotive stock.

http://www.thedetroitbureau.com/about/subscribe

Free Subscription!

“I think the appetite in the marketplace is going to be really good for GM stock,” he said. In fact, he added, some analysts said the automaker’s IPO could be the biggest ever.

When the stock does go public, Whitacre said he hopes that the government will be completely removed from any significant GM ownership.

(more…)

GM Readying IPO Announcement in Mid-August?

Maker thinks it can pay back most or all of the taxpayer bailout.

by on Jul.23, 2010

Why is this man laughing? CEO Ed Whitacre could be ready to move on an IPO in a matter of weeks.

General Motors is expected to announce its eagerly-anticipated IPO in mid-August, industry sources are reporting, this morning.

The timing could permit the company to actually stage its return to Wall Street sometime before the hotly-contested November elections which, sources suggest, indicate GM’s growing confidence it will be able to pay back most, if not all of the $50 billion the U.S. Treasury invested as part of a 2009 bailout that climaxed with the automaker’s lightning-fast run through bankruptcy court.

http://www.thedetroitbureau.com/about/subscribe

Great Investment - Free and Worth every Penny!

GM Chairman and CEO Ed Whitacre Jr. has made no secret of his desire to stage an Initial Public Offering as soon as possible.  For one thing, that would end the government’s oversight of the largest domestic automaker.  But it would also help overcome criticism by many potential buyers who are loathe to do business with a company surviving on the public dole.

(more…)