( bell ringing ) ( engine revving ) >> tom: and with that, general motors roars back to life as a public company. >> american taxpayers are now positioned to recover more than my administration invested in g.m. >> suzanne: the much anticipated g.m. i.p.o. raised over $23 billion. coming up, g.m.'s road ahead, and a conversation with g.m. c.e.o. dan akerson. you're watching "nightly business report" for thursday, november 18. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

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captioning sponsored by wpbt >> tom: good evening and thanks for joining us. general motors is once again a publicly traded company, suzanne. the century-old auto maker has been on a long road to rebirth, ending today with its return to the new york stock exchange. >> suzanne: tom, that return to the nyse was one for the record books as g.m. became the biggest initial public offering ever. g.m. shares opened at $35 and hit an intra-day high of $35.98, before backing down a bit to close at $34.19. but that's still up from the i.p.o. price of $33 per share. the auto maker sold 478 million shares, raising $23.1 billion. today's sale cuts uncle sam's stake in g.m. to 37%. that could drop even further if over-allotments and warrants are exercised. now that its public again, what could be next for g.m. stock? david menlow of i.p.o. financial

thinks individual investors should be weary. ... wary. >> individual investors that were the beneficiaries of the i.p.o. price stock at $33 will probably see the price of general motors come down and possibly violate that price. although it's nice to have the actual shares and say you bought the i.p.o., it's important to realize that this company is walking into a fourth quarter that is going to be softer than the previous three quarters than have reported. >> tom: the i.p.o. is being hailed as a milestone from wall street to the white house. general motors' return to the stock market helps it shed a reputation as "government motors" and puts it on the road to financial recovery. but as diane eastabrook reports, g.m. still faces major potholes. ( applause ) >> reporter: with the roar of a camaro engine, general motors executives opened trading this morning at the new york stock exchange. chief financial officer chris liddell considers it a huge

triumph for a company that went bankrupt, got a government bailout, and was delisted from the exchange less than 18 months ago. >> it's an exciting milestone for all the employees, in particular the people who sacrificed so much over the last few years. >> reporter: so far this year, g.m. has made close to $5 billion, after losing roughly $82 billion over four previous years. outside the nyse, g.m. showed off its products, proving bankruptcy reorganization has helped turn it into a lean money-making machine, instead of a cash-bleeding clunker. but despite the company's progress, the sins of old g.m. could continue to haunt the new one. for starters, the company's gone through four chief executives in two years, and current c.e.o. dan akerson's been on the job only a couple of months. that's a red flag for james schrager from the university of chicago's booth school of business. >> this injects a whole lot of questions about what the future is going to be. as an investor bets on a stock,

he bets on the management team. and right now, things look good, but we still haven't seen much. >> reporter: and while g.m.'s sport utilities and trucks are selling well, its cars aren't. new models like the buick regal are helping, but critics argue g.m.'s overall car portfolio still lags many of its rivals. internationally, china has been a hot spot, and buick is the top-selling brand there. but, schrager warns, g.m. could easily lose its edge in china. >> international markets, unlike the u.s. and japan, which are relatively stable, are quite volatile. and so, market shares can change much quicker than you would expect in the u.s. and japan. >> reporter: today's i.p.o. reduces the stakes the u.s. treasury, canadian government, and the united auto workers union have in g.m. jack ablin, chief investment officer for harris private bank, thinks that helps the company shed its "government motors" moniker, but not entirely. >> i think that there are a lot of management and union and

government issues circling around this and, you know, there are other ways to play autos without having to get involved in g.m. >> reporter: and one of those ways could be ford. that stock closed at around $16 a share today, a lot less expensive than g.m. >> dianne, speaking of ford. does today mark the end of all the goodwill ford has been receiving for a couple of years for not taking the bail out money like general motors did? >> i don't think so. i think there's still a lot of consumer goodwill out there for ford. it has good management and strong products. and let's not forget that the government still owns a sizable chunk in gm. so that could be a factor going forward. >> gm has plenty more competitors than ford, and a lot more competitors in the u.s. and the landscape is different than a couple of years ago, isn't it? >> it is much different, tom. i know going to the detroit auto show, there's so many popular companies there than

there were 10 years ago, and we're really seeing a big push by the koreans. companies like hyundai are continuing to gain market share every yier. and earlier i was talking to an analyst at the l.a. auto show, and he was raving about the new elant ra competing against the chevy cruise. as you say, a lot of competition. so it's going to be tough for gm going forward. >> and not just the competition out there, i mean the job market is still soft. so what does it have to do to bring those buyers in. >> it is. it's all about product, and 99 bringing out new product to market which we hope to be seeing. again th, year they brought out a lotted of interestingenings this past year. we're expecting to see a new redesigned malibu, and again, if people don't have jobs and they're worry body jobs they may not feel like going out and buying a newel car >> reporting from the cme group in xhx*g chicago.

>> suzanne: here are the stories in tonight's "n.b.r. newswheel." g.m. helped rev up wall street. the dow jumped 173 points, the nasdaq rose 38, and the s&p 500 was up 18. trading volume rising from yesterday's levels on both the big board and the nasdaq. adding to the gains-- hopes of a financial rescue for ireland. after weeks denying it needs help, ireland today admitted it has a debt problem. the irish finance minister is working with the european central bank on an aid plan. here at home, new filings for jobless benefit claims rose by 2,000 in the past week to 439,000. meanwhile, the house today rejected a three-month extension of jobless benefits for the long-term unemployed. the $12 billion cost wasn't offset by spending cuts. without the extension, four million americans will lose their benefits on november 30. >> tom: still ahead, with energy costs rising, tonight's "planet forward" tackles a thrifty way to put solar panels on your

home. >> suzanne: as we continue our coverage of the general motors i.p.o., we talk to the man at the top, c.e.o. dan akerson. i spoke with him early this morning here at the nyse, and began by asking him at what price he'd like to see g.m. shares end their new first day on the big board. >> it's fair to say, we'd like to see it trade up. but i don't really have an idea what the pfsh price is. but trade up is good. >> no magic number? >> no magic number. >> why did you decide the timing was right now to do the ipo? >> well, we always thought in terms of, it was right for the country. what was the economic cycle looking like. had we come out of the bottom? and there has been some improvement in the economy. and then you look at the industry. for the first time in a generation at least, we're on a level playing field. previously, we had over capacity within the industry, going back to labor agreement from the 50s and 60s. we had health care that was

not comparable to some of the foreign transplants and through the process of bankruptcy, unfortunately, much of that was addressed. so the industry was in good shape, and now we're really going to compete on who can, in fact, build the best car. as we say in our advertisement, may the best car win. >> what about plans for future offerings. debt or equity? >> what's in >> it's our intention to pay debt down to zero. that's our goal. and to not have a pension liebltd. that's our next twoo three, four year goal financially. in terms of future equity offerings, that in large measure will be determined by the big holders such as the united states government, the canadian government. when they indicate they want to monetize some of their holdings, the company is obligated to >> after today the u.s. government still has a significant stake in gm.

do you envision a time when uncle sam is no longer part owner of gm? >> well, at the end of the day that's the government -- that's the administration's decision. i think -- i think their interest is along those lines. i think you're better serveed to ask them. >> how does gm stay out of financial trouble going forward? >> we have a pristine balance sheet. it's in really good shape. we want to make it a fortress balance sheet so we have no debt. it seems a little conservative. but when you look at the hundred year cycle of the automobile industry, it's very predictable. you have a down cycle. and within three to five years an up cycle. within three to five years you have a down cycle. what we were doing before is we would fund research and development and engineering projects and because the company was so burdened with debt in a down cycle they had to start slashing jobs, slashing r & d and slashing

engineering, and in turn now, we don't have to do that. we can invest consistently through down cycles and pretty much at the same level even in up cycles. that's a huge game changer for the company. >> at the end of the day, it's about making car that is americans want to buy. >> that's right. >> it's not just about the gm balance sheet. so i mean, what other plans do you have in the works? >> our volt. the chevy volt which is the first really electric car. standard range electric vehicle. you can drive from los angeles to new york and back. it's a great car. it's electric car with gas assist. but interestingly, 80% of americans in this country drive 40 miles or less today. that car will run on a charge 40 miles and a gas assist. that's indicative of the technology coming out. >> chevy cruise, 40 to 44 mile per gallon. it's selling so fast, we have

a third shift. the american taxpayer is getting back a little on their investment today. i think if you really want a return on the investment. come down and see our cars. these are world-class cars. they look great. they're reliable, durable, and they're quality. >> has there been a lot of turnaround in your position. do you plan to stay with gm a long time? >> the bordelled to me they don't want a transitional ceo. i know what i'm signing up for. as long as i make my numbers, i'll keep the job. if i don't, then i shntd keep the job. that's the way it works.

>> tom: it was a broad-based rally with all the major stock sectors seeing higher stock prices. let's get you updated in tonight's "market focus." between the successful general motors i.p.o. and a rescue package taking shape for ireland, investors were back buying u.s. stocks. a look at the leading sectors shows how diverse the buying was. the economically sensitive energy, industrial and materials exchange-traded funds rebounded about 2% each, while tech stocks also staged a bounceback. tech may be worth watching tomorrow. one of the world's biggest computer makers, dell, turned in surprisingly strong quarter results after the close tonight. dell easily beat estimates, with earnings almost doubling from a year ago. strong corporate demand for technology products, including

desktop p.c.s, laptops and mobile devices helped. dell is back as the second biggest computer maker in the world behind hewlett packard. dell stock rallied into this report, up more than 2% today on strong volume. but its had a tough go as shares are down 15% from a year ago. after the close tonight, dell shot up another 6%. if that holds, it could take dell back to its october highs. while we're talking tech, yahoo shares saw a pop in price and volume. usually, yahoo trades about 26 million shares per day, but today, it traded 46 million shares. that jump in volume came as the stock jumped 5%. it closed just shy of $17 at its highest price april. remember that yahoo has been the target of merger overtures. speaking of deals, cablevision wants to spin off rainbow media programming unit, home of amc and sundance channel networks. c.v.c. stock shot up to a new

high, rallying almost 7%. any spin-off could give cablevision's largest shareholder, the dolan family, more flexibility to explore options to take the company private. earlier this year, it spun off madison square gardens. one other deal rumor, this one around fresh del monte. that fueled an 8% rally today to a new high. ireland's willingness to take a bailout from europe also helped settle some renewed anxiety about european debt. ireland has insisted its troubles are in its banking sector, not with its government budget. bank of ireland's stock trading in america saw some relief, up 33% on heavy volume. it had been setting new lows over worries about the irish economy. finally, a couple big moves due to drug trial results. exelixis had encouraging results from its experimental ovarian cancer drug. shares rocketed 32%. the drug trial continues, and

even with this big rally today, shares are still down 10% over the past year. the news was not so good for aastrom biosciences. shares dove 36%. drug trials for an experimental medicine to treat ischemia was disappointing. the condition is caused by blocked arteries and can lead to amputation. and that's tonight's "market focus." >> suzanne: the man who led uncle sam's bailout of g.m. was sued by the s.e.c. today and has

agreed to settle without admitting guilt. former obama administration official steven rattner will pay just over $6 million for his role in a pay-to-play scheme involving new york's pension funds. the s.e.c. also banned rattner from working as an investment advisor for two years. meanwhile, new york's attorney general also sued rattner today, seeking $26 million. rattner say he'll fight that lawsuit. >> tom: here's what we're watching for tomorrow: quarterly results from ann taylor stores and h.j. heinz. the world's largest greeting card company is a family business. we look at the three generations of the hall family, who run hallmark cards. and our friday "market monitor" is kurt reiman, head of thematic research at ubs wealth management research americas. plug-in cars got a jolt today from wholesale electricity producer n.r.g. energy. it's spending $10 million to launch the nation's first private network of charging stations for electric vehicles in houston. a monthly fee of $90 gives drivers a charger at home and

access to 50 charging stations around houston by the middle of next year. n.r.g. c.e.o. david crane doesn't see demand taking off right away, but he thinks the investment is worth it. >> $10 million is a lot of money, but in the world of power plant investing, where a nuclear power plant cane costs $10 billion, it's not a huge amount of money. in a sense, we don't expect an immediate recovery on that investment. we can see the market grow. it's probably going to take several thousand subscribers to this ev-go product. >> tom: to attract more consumers, n.r.g. has a deal with nissan, offering its services to buyers of the new all-electric leaf.

>> suzanne: we continue our partnership with planet forward tonight. that's the george washington university social media project focused on your ideas for powering our future. tonight, we look at solar power. it accounts for less than 1% of our energy. so here's planet forward's fnk sesno with a solar innovation coming your way. >> reporter: let's face it-- solar panels are expensive and seem like tomorrow's energy source to many. but environmentalist turned entrepreneur danny kennedy brought to planet forward a concept he thinks can change the equation. >> there is still a misconception that solar costs a lot of money.

if financed, solar is less expensive than the conventional forms of electricity generation. >> reporter: kennedy once ran with greenpeace. now, he's trying to turn passion into profit. his idea-- not to sell you those panels, but lease them. >> a customer doesn't have to pay anything up front, and a bank pays for half of the system. >> reporter: in the interests of efficiency, special satellite mapping software is used to design these solar systems. so, danny, how did you get started? where did the idea of solar leasing come from? >> the deep barriers to adoption that i saw over a decade were not to do with the technology. they were to do with the up-front costs of the technology and the hassle factor, if you like. and so we knew that if you could finance it, you could massively increase the adoption. >> i'm looking at something over your shoulder there.

might that be your roof? and could you explain how that would actually work if they wanted to lease that solar? >> and i turn it around to show you, and as i spin around were standing on a flat roof, looking at our roof next door, and that's the solar array that sungevity installed. its owned by sungevity, really. you lease it as a customer. >> reporter: what's the business model behind solar leasing? well, the way it has been up until now is, you're the home owner. nice house. and you want to put solar panels on the roof-- fair enough. you sign the contract, and what do you know? uncle sam steps in with a big check in the form of a tax credit. that lowers your up-front cost, to maybe $15,000 or $20,000. but even with that, that's a lot of money. and it could take years maybe decades to get the return on that investment. new business model-- enter the bank. the bank gets the big check in the form of the tax credit from the federal government. that's one way for it to offset its lending. you get a smaller monthly payment. we call it a lease.

monthly lease payments for customers vary, but typically come in around $50 a month, kennedy says. we asked one of his customers to go to planet forward and do the math. >> "i've only had my panels for three months, so need to see how the numbers play out," says kris. he predicts he'll get 40% of his electricity from solar and save $20 to $30 per month. so the question is could solar leasing be a game changer? professor jorge rivera is a colleague of mine here at george washington university in the school of business and author of "business and public policy." what would happen if the government took away the tax credits and the bank doesn't have that big up-front chunk of change? >> well, it will significantly reduce the profitability of the whole model, and not many companies will be interested this type of investment. >> reporter: is that a danger that that could change like that? >> well, yeah, because in 2016, most of these tax incentives provided by the federal government are set to expire. >> reporter: expire?

>> yes. >> reporter: rivera also says one of the biggest challenges facing solar is making tax incentives permanent in the same way fossil fuels have permanent tax breaks. danny, what happens if uncle sam comes along and unplugs all these tax credits they've been handing out to solar? >> if tax credit went away, and it won't, we would work out a way to make this work because the economics are fantastic. the fuel falls free from the sky every day. >> reporter: kennedy says this is just a transition phase we're going through now, and if the tax credits went away, he'd finance it with debt. could floating solar bonds be next? with the belt tightening going on here in washington, more financial innovations for the solar industry may become as important as, well, sunny days. i'm frank sesno with planet forward. >> suzanne: if you have an idea for a planet forward segment, send it our way. just go to nbr on pbs.org and

click on "planet forward". that's "nightly business report" for thursday, november 18. i'm suzanne pratt. good night, everyone, and good night to you, too, tom. >> tom: good night, suzanne. i'm tom hudson. good night, everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org