General Motors started trading on the Toronto Stock Exchange on Thursday, a day after its IPO raised US$20 billion. From a starting price of US$33 a share it rose as high as $35.95 in intraday trading before settling at $34.01. It closed at $34.19 on the New York Stock Exchange, a gain of 3.61% in its first day, where 456,071,375 shares changed hands.
The process taken by management was to:
1. Reduce labour rates and reduce the labour force
2. Shut down non productive manufacturing plants
3. Reduce the number of products
4. Reduce dealerships
5. Increase incentives to purchase a GM vehicle
6. Eliminate Leasing
1. How many shares would you have to own to have “Significance Influence”?
2. Do you think GM stock will increase to $60 per share in a years’ time?
3. What steps would you have taken to turn GM around , from bankruptcy to a successful company?
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