Can GM Relax over Landmark IPO?
For GM, the owner of popular brands such as Buick, Cadillac, Chevrolet, its problems does not end with the IPO. There are several concerns hovering around the company, including its losses in Europe, marketing strategy in North America. In addition, GM also said it expects its fourth-quarter operating profit to come in below the level of the first three quarters of the year, citing a different product mix and higher costs. Analysts say that GM has to do more work to effectively compete with peer Ford, which not only avoided bankruptcy, but is set to register record profits this year. Interestingly, Ford also faced exactly the same challenges as GM, including the United Auto Workers payouts, rivalry from Asian counterparts like Toyota, surging oil prices and above all, the same recession. Ford, founded by Henry Ford and incorporated in 1903, also announced debt reduction actions in the automotive business to strengthen its balance sheet. The company stated recently it will use cash to f
