General Motors IPO: Auto Suppliers Cash In

Michael Filighera submits:

Moving the Market

In light of General Motors' (GM) November 18th initial public offering, which was anticipated to be one of the largest in US history, we examined the performance of automakers and their suppliers from the start of the "Cash-for-Clunkers" program in July 2009, through November 17th. When the NHTSA started the "Cash-for-Clunkers" program on July 24, 2009, more than $2 billion was allocated. As a result, about 675,000 cars were sold with slightly less than half of them being domestically manufactured (49 percent). These sales clearly boosted the performance of the Big Three domestic automakers: General Motors, Chrysler, and Ford (F).