GM Takes Step Toward Selling Stock To Public

After several delays, General Motors has started the process of moving out of government ownership. GM Wednesday filed the first batch of paperwork needed to sell stock to the public.  WWJ AutoBeat Reporter Jeff Gilbert says the next step could be even tougher --- convincing Wall Street to buy.

Even in the 1990s, when the auto companies were making big money, Wall Street passed by their stocks for those of tech companies, Gilbert said. 

Dave Cole, from the Center For Auto Research said that the concern back then was about longterm problems that GM, in this case, has fixed.

"I think that as the economy begins to really accelerate, we're going to see earnings out of Ford and GM that are just absolutely sensational," Cole said.

 The company says the U.S. government and other stakeholders will sell common shares worth $100 million. GM will sell preferred shares worth $100 million. Those numbers are rough estimates and the amount raised in the actual stock sale is expected to be much higher.

View a copy of the IPO filing HERE.

GM got a $50 billion government bailout last year to stay in business. In exchange, U.S. taxpayers now own 61 percent of the company.

The government is expected to sell at least part of its stake to get taxpayer money back. CEO Ed Whitacre said government ownership has hurt GM's sales and public image.

It's expected to be about three months before GM stock actually goes on sale.

(Copyright 2010 WWJ Radio.  All Rights Reserved. The Associated Press contributed to this report)