GM CEO Dan Akerson believes the automaker is close to get back to the S&P 500 index.
“We’ve delivered 13 consecutive profitable quarters, we’re on the cusp of regaining our investment grade credit rating and before too long I expect we’ll rejoin the S&P 500,” Akerson said.
The announcement was made on Saturday, May 18th, during a commencement speech to the University of Notre Dame’s Mendoza College of Business. In June 2009 the company was removed from the S&P 500 index when it filed for bankruptcy. The index includes the best 500 companies in the US and is considered a barometer of the U.S. equities market.
On Friday, May 17th, GM’s stock reached $33.42, which is the highest level in more than two years. The US Treasury, which still owns 241.7 million GM shares, plans to exit the automaker by March 2014. Akerson also said that the automaker plans to make Cadillac a true luxury brand and become a tougher competitor for the other luxury automakers.
“That has made Cadillac a priority in our four-year, $11 billion China capital program,” Akerson said.
At the beginning of this month the Treasury announced it begins another round of GM shares sales. GM received a $49.5 billion bailout and at the end of March the Treasury said it had recovered $30.4 billion. Still, for the Treasury to be able to break even after the shares’ sales, it would have to sell each share for about $79.
Source: The Detroit News