GM's IPO Ushers in Big 3 Renaissance
CNBC Auto and Airline Industry Reporter
GM is about to have the largest IPO ever in the U.S.
Ford is on a roll and enjoying one its most profitable years ever.
Chrysler is rolling out a slew of new models as it continues to get healthy after being left for dead.
On top of that a long time auto analyst (and critic of the Big 3) said to me, "This is a great time to be bullish on Detroit."
Yes, these are great days for the Big 3. And what's even more encouraging for those who work for the Big 3 or are invested in those automakers is that this renaissance for Detroit is just beginning. With their balance sheets in order, their costs under control and fresh models rolling into showrooms the Big 3 have ingredients in place for an extended profitable run.
Now, I know some of you will read this and scoff. You don't like how GM was bailed out. Or you point out that Chrysler's game plan under Fiat in unproven. Or you think Ford's rebound is a flash in the pan that won't last. That's fine. Bet against Detroit if you want.
My point is that whether or not you like what you see from the Big 3, the numbers tell a very clear story. Sales are improving, residuals are up, and costs are in check. This is why Wall Street is looking at Detroit and seeing it in a far more positive light. And yes, this should continue for a while.
So as GM's stock rolls out, keep this in mind. It's little comfort to the tens of thousands who lost their job when the auto industry imploded, or to the thousands of investors who lost billions as GM slid into bankruptcy. The horrific last two years should not be forgotten. Nor should the optimism of the next year or two be dismissed.
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