GM to Share its Finances with Potential Investors
General Motors Co. today is hosting an invitation-only briefing on its financial plans, ahead of the automaker's planned stock offering, reported The Detroit News.
GM isn't planning any major announcements at the session, at its Warren Tech Center. But executives will offer detailed financial information on its business, industry trends and plans -- especially in foreign markets.
About 200 people, most from the financial community, are expected to attend.
They are to hear presentations from many GM execs, including Chief Financial Officer Chris Liddell.
The meeting is "monumentally important" for GM, in convincing potential investors that it will be a sound investment, said Maryann Keller, an auto analyst and head of Maryann Keller & Associates in Stamford, Conn.
GM must give potential investors a clear picture of its long-term plans, including investments and how it will boost its market share. Executives also need to convince investors that the auto company will generate sufficient cash to fund new vehicle investments, she said.
"They need to tell us how, in a brutally competitive automotive world, they're going to earn a return on an investment," Keller said.
GM Chairman and Chief Executive Ed Whitacre will speak, and Tom Stephens, vice chairman of global product operations, will update investors on the company's product planning.
GM stock could be offered as early as October, and raise $20 billion as the U.S. Treasury Department divests 20 percent, or more, of its 61 percent stake. GM is still working on its stock registration.
GM plans to more regularly update the financial community as it works to complete its initial public offering registration statement.
The meeting will serve as a coming out party of sorts for Liddell, and could answer prospective investor questions about whether he is a worthy candidate to succeed Whitacre, Keller said.
"This is his first major in-person presentation to a very, very large audience," she said. "One question any prospective investor would ask is 'Who's going to run the business in the future?' At some point, when Mr. Whitacre declares he's finished and his work is done, do they have his replacement inside the company?"
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →