The GM bailout was a huge success, we're told. Things are going so well, that the company is going public, and they're even building a new, state of the art factory! Ya. And guess where they're building it!
U.S. automobile giant General Motors Co. said Tuesday it plans to invest close to $500 million in its Ramos Arizpe plant in northern Mexico to produce a new line of engines as well as a new vehicle.
With Americans the majority shareholders of the company, why would we choose to locate the factory elsewhere?
Of that amount, the company is investing $284 million to manufacture eight-cylinder engines with spark-ignition direct-injection technology, known as SIDI, Grace Lieblein, chief executive of GM de Mexico, said at an event.
Lieblein said General Motors has invested $4.1 billion in Mexico over the last four years.
What about going public?
The U.S. government is likely to take a loss on General Motors Co [GM.UL] in the first offering of the automaker's stock, six people familiar with preparations for the landmark IPO said.
Subsequent offerings of the government's holdings may be profitable depending on how investors trade the newly listed stock, the sources said.
But the question of whether taxpayers are ultimately made whole on GM's $50 billion bailout could be left open for years, the people said.