GM Announces Massive Model Expansion

The new GM is holding its first IPO this fall, and the company has recently announced that they will be introducing 70 new or revamped models to the market over the next four years. Ford whose vehicles are sold at East Petersburg Ford, did not declare bankruptcy last year. Foreign automakers such as Nissan and Volkswagen have not been hit as badly as domestic automakers from the recession. Nissan models can be purchased at a Washington Nissan dealer, and Volkswagen models can be tested at a Volkswagen Peoria Dealer.

GM hopes that the announcement will increase investor interest in the company which declared bankruptcy last summer and is hoping to raise money at its IPO. An interesting fact is that GM has done better in foreign markets rather than the domestic markets. The combined markets of China, Russia, India, and Brazil accounted for 74 percent of GM's sales in 2009. GM is emerging from bankruptcy as truly a world brand.

In North America, GM has also improved its sales and is selling more than they did in 2009. GM's average transaction has increased a huge $3,000 per transaction. GM's changes have included reducing the number of dealership vehicles throughout the nation, and discontinuing four models.

GM hopes to raise a substantial amount of revenue at the IPO this fall. At the moment, the U.S. government owns a substantial stake in the company, but the IPO will reduce the ownership of the government to a smaller amount. It current owns 60.8 percent of the company after the company received a $50 billion bailout in 2009.

The U.S. government will sell approximately 20 percent of its own holdings at the stock sale to reduce its ownership of the company. GM has broken even in North American car sales and intends to break even in Europe by 2011.