While we think there is some small cause for celebration in GM going public today and repaying a portion of the taxpayer’s money, we believe GM has a long way to go before proving it is a completely rehabilitated company.
GM still has a number of problems to face as a public company. Their market share, product lineup, and profitability metrics have all improved. However, in the long run, GM’s continued viability depends on consumer confidence and labor costs. People need to want and be able to afford GM’s products. The relationship between GM management and the union has been stormy in the past, and a change in this relationship is a necessary precursor to future success. As taxpayers and Midwesterners living in GM’s backyard, we hope they get it right and we are able to celebrate the company many times in the future.