>This is not a coincidence.
The Chevrolet Volt has just been awarded “Motor Trend,” “Green Car Journal” and “Automobile Magazine’s” 2011 car of the year. Then, in perfectly synchronized timing, General Motors returns, Camaro convertible entrance and all, to NYSE.
Really, the timing of positive news couldn’t have been better orchestrated. After the bells rang for the market close on Thursday, analysts began to scramble out highly opinionated articles on GM’s first day back (yahoo! finance: GM).
However, I feel that too much speculation on GM’s well-being are being dished based sheerly on its IPO debut. Any call made at this point is just premature.
The good news is, GM currently outsells any overseas rival within the China market. And because of this, GM was able to post 3rd quarter earnings of $2Bil. But in the end, it will be the Volt that will decide GM’s fate (hence my “raised eyebrows” on the perfect timing).
The Volt has been the center of GM’s media attention. They’ve put such an incredible amount of money and dedication into that vehicle over so many years that if the Volt were to not meet its predicted sales goal, then a great amount of investor confidence will be lost. If that does happen, and GM is unable to sustain long-term profits, then GM has effectively broken its strongest link in the chain.
In the meant time, day traders will do what they will.
And what about the U.S. government? On the IPO’s first day, the U.S. has made $11.8 billion from selling 358 million shares, reducing our stake from 60% (+/-) to 35% (+/-). Let’s hope we’ll be able to earn enough from the shares to take back our bailout money.
Get it together, GM.
Read more about the Chevrolet Volt: