After the unfortunate financial crisis of 2009, GM has been taking big steps in order to eliminate the associated stigma. Now that the nickname of “government motors” is diminishing, it’s time to obtain an optimal standing in the investment world.
Recently, CEO Dan Akerson and CFO Dan Ammann met with financial analysts at the proving grounds (or top-secret amusement park, depending on how you look at it) in Milford, Michigan.
“We’re obviously targeting an investment grade rating as soon as possible,” Ammann said. There is to be an $8 billion in annual capital spending, to help with confidence building in investing parties. Back in January, Akerson had hoped that GM would achieve an investment grade credit rating at some point in 2013.
Later in the month, treasurer James Davlin said GM is “trending toward investment grade.”
While executives at GM have referred to the balance sheet as a fortress, not all investors are convinced that their returns will be as strong. “Reinvesting in the business is the single most important thing we can be doing with our cash,” Ammann reassured.
With the global markets improving, a balanced budget, and stateside brands growing well (Cadillac in particular), GM seems to be confident in their ability to please customers and investors worldwide.