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US Goverment Still Owns 60.8% of all stock

Will the new GM Bring Back Pontiac
Posted June 1 2010 08:08 AM by Chris Phillip 
Filed under: Pontiac News, Chris Phillip

GM may have paid back its federal bailout loans, but that doesn't mean that its operating independently of the US Government, at least not yet.


According to sources at GM, the US Government still owns a controlling 60.8% interest in General Motors, and while that ownership stake continues, there's no way Pontiac can return.

An initial public offering of new GM stock will allow GM to pay off the US Government's stake in the company. After that, there's a good chance that GM can start looking at the mistakes it made during bankrupcy ... and maybe even bring Pontiac back as a performance brand.

 



6 comments
Moanalua
Moanalua

I was devastated, too. Like you, I've had five Pontiacs, whose models ran from '66-'84. I still have the '84. It's an outrage that Pontiac outsold Audi AND Volvo COMBINED, yet Audi AND Volvo are still in business. That's pretty messed-up, if you ask me. Pontiac should return.

surgeont
surgeont

Exactly. I have 5 Pontiacs 67-2009 and I am/was devastated GM/Obama would trash na car that outsold Audi/volvo combined.

Moanalua
Moanalua

GM really SHOULD bring Pontiac back. It truly is an iconic make. Look at the four major American makes that have died during the last ten years: Plymouth, Oldsmobile, Pontiac, and Mercury, in that order (Mercury dies after this year). Notice that only Pontiac kept its badge design? The three other makes all changed their badge design during the early- to mid-1980s. Pontiac kept its arrowhead badge that it had had since the mid-1960s. If you ask me, that's a sign of a strong, iconic make. And let's keep in mind that when GM foolishly decided to kill Pontiac instead of Buick last year, Pontiac was outselling Buick TWO TO ONE! As a person who has owned only Pontiacs all his life (and still owns one), I hope GM brings Pontiac back. Until then, I can't imagine rewarding GM by buying any new GM vehicle.

ChristopherPrice
ChristopherPrice

There's an oversight in this article that may wind up getting people's hopes up. When the government does offer an IPO of New GM, it will likely be very small. Single digit percentages of total shares. I would be very surprised if New GM's IPO exceeds 10% of common stock. That will still give the government 50.8%, and they will still maintain control of GM. Likely the next sale of stock will come from the unions, who need the cash to replenish their devastated pension obligation benefits. This could take as much as a year, or two, between IPOs. That will largely depend on how well GM shares perform in the market. RIght now, it's a toss-up, which is why the government is dragging their feet on the IPO.It's not clear when the government will give up its controlling stake, but wait, there's more bad news. Even when they do, they'll be operating in a voting block with the unions. The unions will likely follow the instructions of the President's Auto Task Force... which doesn't like Pontiac one bit (sport cars + environment = government opposition).Long story short, it is not likely that GM will even have the option of offering Pontiac until a new president is in office. Yes, we could be talking over six years there. And then, GM will have to decide if there enough young buyers that care about Pontiac at that point... many of whom will have spent their early 20s in a market without the badge.But, keep the faith, and support GM now. Now isn't the time to boycott GM. The more you support them, the more power will be there later for customers to demand Pontiac's return.

jerzyjak
jerzyjak

I feel once GM rids themselves of government intervention, we as fans of Pontiac should already have a strategy in place to help in the phoenix (rise from the ashes) of Pontiac this should be contacting all the Buick-GMC-Cadillac dealers and having a petition that people can sign plus having the same petition at car show and meets then we have to set a goal say 500000 or a million signature. Then if GM decides to bring back the brand they can use the slogan "THE PUBLIC SPOKE AND WE LISTEND" or "THE CAR THAT REFUSED TO DIE" and they will have to have a new Pontiac Phoenix to celebrate the rise from the ashes, from speaking to the owner of our local Buick-GMC-Cadillac dealer he feels that GM made a huge mistake and any grassroots effort to bring back the Pontiac would be supported at the dealership level.

jerzyjak
jerzyjak

I feel once GM rids themselves of government intervention, we as fans of Pontiac should already have a strategy in place to help in the phoenix (rise from the ashes) of Pontiac this should be contacting all the Buick-GMC-Cadillac dealers and having a petition that people can sign plus having the same petition at car show and meets then we have to set a goal say 500000 or a million signature. Then if GM decides to bring back the brand they can use the slogan "THE PUBLIC SPOKE AND WE LISTEND" or "THE CAR THAT REFUSED TO DIE" and they will have to have a new Pontiac Phoenix to celebrate the rise from the ashes, from speaking to the owner of our local Buick-GMC-Cadillac dealer he feels that GM made a huge mistake and any grassroots effort to bring back the Pontiac would be supported at the dealership level.

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High Performance Pontiac
High Performance Pontiac