GM and Ford revenue were large in Oct. large earnings were realized by GM and Ford on the back of great October auto sales. The modified revenue rate for Oct had been within the dual digits, and home-based automakers are reaping large benefits. General Motors isn’t only posting record profits, but an initial public offering of General Motors share is about to happen.
Oct sales for General Motors and Ford are significant
The auto industry showed recovery again through Oct auto sales after September showed the opposite. The Cash for Clunkers program had auto sales crashing since 2009 when it ended but that has changed. CNN reports that Ford and General Motors had the largest gains from September to October when the overall gain was 13 percent. Compared to last Oct, General Motors posted a 4 percent sales gain. General Motors, so far this year, has had an increase of 22 percent. Ford, on the other hand, has posted a 15 percent gain overall since October 2009. Sales were driven especially by full size pickups. If you forget about Volvo, Ford sales are up 19 percent. Geely, a Chinese auto firm, buys the Volvo.
Soon to determine General Motors IPO
General Motors is already touting a GM stock offering as imminent. Before Thanksgiving, an original public offering is expected. This is what the company will be giving. It is possible for the IPO to happen on November 17. This would be just a week after 3rd quarter earnings are reported by GM. The $34 billion quarter expects much of that to come from General Motors. About $1.9 and $2.1 billion is expected to be reported. Supposedly the Treasury will release a lot of General Motors shares. Through the auto bailout they obtained these.
Seeing what the future holds
The IPO could greatly reduce the GM shares the government holds. It would go from 61 percent to 43.3 percent possibly. GM stock prices should be within the $23 to $29 range. Both firms have had great years. Hopefully 2011 will be good years too for the companies.
Articles cited
CNN
money.cnn.com/2010/11/03/autos/October_auto_sales/index.htm
Auto News
autonews.com/apps/pbcs.dll/article?AID=/20101103/OEM/101109930/1424
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