GM is close to lose the “Government Motors” stigma now that the US Treasury decided to sell it stake in the company and with the possibility of a credit rating upgrade in 2013.
“We lose the stigma of ‘Government Motors’,” GM Treasurer James Davlin said on Sunday during a speech at a conference of automotive analysts. “People will be more focused on the things that they should, which is our underlying operations.”
In December, the US Treasury presented its plans to sell the remaining stake in GM over the next 15 months. GM’s Chief Executive Dan Akerson announced last week that he expects the automaker to gain an investment-grade credit rating this year, also making reference to the company’s strong position as the second largest automaker in China and the US, its large financial cushion and the eleven-quarter streak of profits.
“We want to ensure we have the liquidity to make it through the cyclicality of the industry,” Davlin said a day before the Detroit show.
After the US Treasury announced its exit strategy, GM’s shares have increased almost 20%, reaching $30.36 per share on Friday, January 11th. Still, GM has many challenges to deal with, especially in Europe where the company is struggling to make up for years of losses.