Bailing out the U.S. automobile industry “was the right thing to do” despite declining share values over the past year, former General Motors Vice Chairman Bob Lutz said Monday.
“All of the automotive stocks are down. Many industrial stocks are down. Facebook is way up,” Lutz said on CNBC’s “The Kudlow Report,” adding that the company might be flying under many investors’ radar.
“The fact is, the investment community does not yet fully understand the value that’s residing in General Motors stock,” he said. “Ultimately, it will be recognized because the company is doing fabulously well in China, Latin America, the United States, record profitability. We’ve got a little problem to solve in Europe, but that’s on the way to solution.”
Lutz added that he was referring to “GM-controllable problems,” not the wider euro crisis.
In November 2010, General Motors pulled off the then-largest initial public offering in U.S. history, raising $20.1 billion with shares priced at $33.