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.
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.”