Nightly News | November 17, 2010
>>> now to the u.s. economy . another big step in what's been a big comeback for gm, the company forced into bankruptcy and kept alive really only through that massive government bailout. tonight, gm's long plan stock offering will raise an record amount for an american company , but is this a good deal for taxpayers and investors alive? phil, good evening.
>> reporter: good evening. general motors has priced its stock to start trading tomorrow at $33 a share. as the company makes another big step in its comeback from bankruptcy. it is a historic day for a company that was all but dead last year. for more than a century, general motors gave us classics like the chevy camaro and cadillac seville . now it's about to become publicly traded, ending a year and a half of government ownership . at this dealership in washington, michigan, that's welcome news.
>> people are going to be very excited to see what the new gm can do.
>> reporter: after cutting a dozen plants in north america , the new gm is leaner. gm sold or shut down point yak, saturn, hummer and saab. more importantly, gm is now profitable. in 2008 , it lost almost $1,200 on every car it sold in north america . today, it's making just over $3,000 on every car it sells. the focus of the new gm is increasingly overseas. in particular, china where gm is number one in sales. gm's chinese partner, shanghai automotive , owned by the chinese government , is poised to buy 1% of gm for $500 million.
>> general motors has wisely taken their relationship with shanghai automotive to the next level.
>> reporter: for thousands of gm retires who watched their savings evaporate when the old gm went bank ruptd, deciding whether to buy into the new gm is not easy.
>> i think they have learned from past mistakes and they are a stronger company. unfortunately, there was a lot of decisions made that affected a lot of people, that hurt a lot of people, myself included.
>> reporter: when all is said and done, the gm ipo could generate up to $13.6 billion for the federal government as it sells its stake, money that will go back to the treasury department .
>> phil, thanks as always.