Facts About GM's Product Distribution At IPO Hour

Demand for General Motors stock has been so strong that the company will expand its initial public offering by 31 percent, to 478 million common shares, AP reported.

Ron Bloom, the Obama Administration's point man on auto restructuring, told Reuters on Thursday, November 18 that the government wants a fair return for taxpayers on its $50 billion investment, but also wants to "get out of this thing as soon as we can."  Bloom also said that the U.S. government is satisfied with the IPO pricing and investor lineup.

Regarding supply chain and product development and distribution, here are a few statistical highlights:
  • GM has a global network of more than 21,700 independent dealers
  • In 2009, the company (old and new) sold 7.5 million vehicles, approx. 11.6% of worldwide vehicle sales
  • Seventy-two percent of its sales were outside the U.S., with 38.7 percent coming from emerging markets, including BRIC nations: Brazil, Russia, India and China
GM says the following: "We are affected significantly by governmental regulations that can increase costs related to the production of our vehicles and affect our product portfolio. We anticipate that the number and extent of these regulations, and the related costs and changes to our product lineup, will increase significantly in the future. In the U.S. and Europe, for example, governmental regulation is primarily driven by concerns about the environment (including greenhouse gas emissions), vehicle safety, fuel economy, and energy security. These government regulatory requirements could significantly affect our plans for global product development and may result in substantial costs, including civil penalties. They may also result in limits on the types of vehicles we sell and where we sell them, which can affect revenue."

Source:  SmartPlanet - good article, just facts and quotes.
Kathleen HurleyGM, IPO, facts