Anyone contemplating an IPO should go to school on GM’s activities over the past couple months.
This is an area managed directly by the new leadership team and they are hitting most of their marks perfectly.
Firstly, October sales were slightly above expectations and with reduced incentives, to boot. There has been generally good news about the important Cruze launch. Then we had strong Q3 results, with Europe the only trouble spot. Last week, we learned that GE was buying 12,000 Chevy Volts for their fleet. Earlier this week, rumors were circulating about strong demand for the shares, which led to a higher opening price. Today, it was announced that the Chevy Volt won Automobile Magazine's Automobile of the year AND the Motor Trend car of the year awards.
To be sure, there have been a couple stumbles. Last week’s recall would have been best avoided, but recalls don’t seem to have the impact today they did earlier this year. And the Volt story at launch could have been better told. But these are quibbles.
For an IPO to be successful, a company needs to have a strong story. But it can also be boosted by a drumbeat of positive news reports leading to the IPO. Nobody understands this better than Steve Girsky and Chris Liddell.
A bit of luck can’t hurt—like the fact that Ford is trading at recent highs creating a nice buzz around autos in general.
All this has to be good news for taxpayers.