President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.
In the past couple of years since GM went public 0n November 17th, 2010, the American automaker has failed to recapture a significant amount of market share, and some of it newest models have been a little underwhelming to say the least – the Chevy Malibuin particular. Thanks to the bailout, the federal government owns half a billion shares of GM, or about 26-percent of the automaker. While GM’s stock went public at $33 a share, it’s currently hovering around $20 a share, meaning it has dropped in value by a significant 39%.
Making matters worse is the fact that GM’s stock has underperformed relative to the market. During the period since GM went public in November of 2010, the DOW Industrial Average has risen 20 percent, meaning the current shares have actually lost 49% of their value relative to the DOW.
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