Enter your email address and start getting breaking law firm and legal news right now!
CEO of General Motors Discusses Company’s Credit Plans
The CEO of General Motors, Dan Akerson, said on Wednesday that he hopes the company reacquires investment-grade credit status in 2013, according to The Associated Press. Akerson spoke with reporters, saying that General Motors is still working with credit rating agencies in an effort to increase its status from junk. It has been in the tank since 2005.
Akerson noted that the recent $11 billion credit line for General Motors received an investment grade rating, which proves that credit ratings agencies are behind banks when it comes to issuing ratings.
Lower interest rates are acquired by companies who have investment grade status when they decide to borrow money. Sales for General Motors in North America are expected to outpace the rest of the market in 2013, according to Akerson. In 2012, sales for General Motors rose 3.7 percent, which was much slower than the 13 percent increase across the industry.
General Motors has also predicted that total industry sales in the United States will increase to a range of 15 million to 15.5 million in 2013 compared to the 14.5 million in 2012. Akerson also offered a forecast of small growth in General Motors’ market share in the United States for 2013 because of new vehicles such as the Cadillac ATS.
Akerson also told reporters that he is planning to be the CEO of General Motors at this same time in 2014, but after that, he just does not know yet. Periodic talent reviews are conducted by the board of General Motors as part of the company’s succession plans. Akerson said that there is a “stable of very capable leaders” to succeed him at General Motors.
He also noted that General Motors is talking with the United Auto Workers union regarding lump-sum pension buyouts, but he would not elaborate on the issue. White collar workers were offered buyouts from General Motors and even switched the salaried pension plan to an insurance company annuity in 2012.CEO of General Motors Discusses Company's Credit Plans by Jim Vassallo