General Motors Co. on Wednesday is expected to file for a long-awaited public offering that will take its place among the biggest IPOs in history and set the stage for the U.S. government to exit the car business.
The company is reportedly looking to raise up to $16 billion, with the U.S. Treasury selling some of its shares. For taxpayers to fully get their money back, the public offering likely has to bring in about $70 billion.
The latest retail sales figures show that auto sales were strong last month and the latest industrial production numbers were strong, partly as a result of auto production.
Finally, consider this chart:
Auto sales have risen from a bottom, but have a long way to go before they hit previous levels. It's also important to ask whether or not we'll see auto sales rise to that previous levels anytime soon considering the consumer retrenchment we're seeing along with a high unemployment rate.