Key Events From GM's Bankruptcy To Its IPO
A timeline of key events at General Motors Co., starting with its exit from bankruptcy protection last year:
– July 10 – Emerges from bankruptcy protection only six weeks after it filed for reorganization. Becomes a private company with U.S. government as largest shareholder. Former AT&T head Ed Whitacre becomes board chairman.
- Sept. 30 – Announces plans to shut down Saturn brand, one of several that General Motors looks to shed as it scales back to four brands from eight.
– Nov. 2 – U.S. Government Accountability Office says GM and Chrysler Group LLC will likely not be valuable enough for the Treasury Department to break even on $80 billion in investments.
- Nov. 3 – Decides to keep European car company Opel, dropping a deal to sell 55 percent stake to Canada’s Magna International Inc.
- Nov. 16 – Reports a $1.2 billion loss from July bankruptcy exit through Sept. 30.
- Dec. 1 – CEO Fritz Henderson resigns after just eight months. Whitacre named temporary chief executive. Whitacre later becomes permanent CEO.
- Jan. 25 – GM agrees to sell Saab brand to Dutch company Spyker for $74 million in cash.
- Feb. 24 – Announces end of Hummer brand as plans to find a buyer fall through.
– April 7 – Reports $3.4 billion loss for the fourth quarter of 2009.
- April 21 – Repays $8.1 billion of loans to U.S. and Canadian governments.
- May 17 – Reports first-quarter profit of $865 million, its first quarterly profit since 2007.
– June 17 – Says it will keep most of its U.S. factories open through the normal two-week summer shutdown to meet demand for some of its vehicles, including the Buick LaCrosse sedan and the Chevrolet Traverse crossover.
- July 22 – Announces it will buy AmeriCredit Corp. for $3.5 billion to expand loans to customers with poor credit.
- July 27 – Sets price for electric plug-in Chevrolet Volt car at of $41,000. Sales to begin in December.
- July 1 – Reports its U.S. sales were up 14.3 percent in the first six months of the year from the same period in 2009, but industry sales rose 16.7 percent. GM’s U.S. market share dropped from 19.6 percent to 19.2 percent for the six-month period.
– Aug. 5 – Says it will have 4,500 U.S. dealers – 25 percent fewer than in 2009 – after completing arbitration with dealers who fought GM’s attempt to sever them from the company.
- Aug. 12 – Reports $1.3 billion profit from April through June; Whitacre announces plans to step down as company moves toward initial public offering. Board member Daniel Akerson replaces Whitacre as CEO on Sept. 1 and as chairman at the end of the year.
– Aug. 18 – Files initial paperwork to sell its stock to the public, its first step toward ending government ownership.
- Sept. 16 – Akerson says it will take a couple of years for taxpayers to get back all the money spent on the GM bailout, but the company has the goal of repaying it.
– Sept. 20 – The Treasury Department confirms GM will court foreign investors as well as those in North America for the stock sale, but won’t comment on reports that GM’s partner in China, SAIC, wants to buy a stake in the automaker.
– Oct. 5 – Sends a letter to employees, retirees and dealers giving them until Oct. 22 to sign up and buy stock at the offering price, which hasn’t been set. They must invest more than $1,000 to participate.
- Oct. 12 – Akerson and Treasury Secretary Timothy Geithner meet for the first time in New York to discuss the IPO as GM waits for approval from the Securities and Exchange Commission to sell the shares.
- Oct. 28 – Says it will cut its debt by $11 billion to make its balance sheet more attractive to potential investors. GM says it will contribute $2.8 billion to a health care fund for retirees, buy $2.1 billion worth of preferred shares from the U.S. government and put $6 billion toward its pension obligations.
- Nov. 1 – Says common stock is expected to sell for between $26 and $29 per share.
– Nov. 5 – Executives begin a road show to drum up interest among potential investors. GM touts its strength in China and global sales potential, including the possibility that it could make annual profits of up to $19 billion before taxes once global sales recover from the economic downturn.
- Nov. 10 – Reports a third-quarter profit of $2.2 billion.
- Nov. 17 – Responding to demand, GM says it will raise the size of its IPO to 478 million common shares from the previously announced 365 million shares. GM says the shares will trade at $33 each, up 14 percent from its initial projections.
- Nov. 18 – Akerson rings the opening bell at the New York Stock Exchange and shares begin trading at $33, rising to $36 in the first few minutes of buying and selling. Akerson tells media that the company has learned from its mistakes and will never forget the support it received from U.S. taxpayers.
(Copyright 2010 by The Associated Press. All Rights Reserved.)