It's a compelling argument. The question is who will buy it and who will dismiss it as inflated confidence.
Today two teams of GM executives will kick off their IPO road show with presentations about why big firms should invest in the new GM. It makes two compelling arguments:
- GM is restructured to be profitable at a much lower sales volume in North America.
- GM is the only global auto maker that is strong in North America, China, and the rapidly growing BRIC (Brazil, Russia, India, China) markets.
Whether you want to agree with them or not, GM is absolutely right on both counts. It's made roughly $4 Billion this year, thanks in large part to the fact that bankruptcy allowed it to clean up its balance sheet. And yes, GM is very strong around the globe. Especially in China which has blown by the U.S. to become the world's largest market.