General Motors Co . , preparing for an initial public offering , is showing a different spirit than the failed behemoth that preceded it : investing in small cars , planning to hire workers and paying obligations early . GM Thursday said it ’ s investing in a Michigan factory to make a small Cadillac and hire 600 workers . Hours later , it said it paid $ 2 . 8 billion to its union retiree health care trust and obtained $ 5 billion in credit that it may not need . After the IPO , the Detroit - based automaker said it will buy back preferred shares from the U . S . and put $ 6 billion in its pension plans . The rapid - fire moves show how GM will operate under new chief executive officer Dan Akerson after the nation ’ s largest automaker purged much of its debt and lowered its fixed costs by restructuring in bankruptcy . “ What happened over the past 12 months was ordained by the courts , ” said Maryann Keller , an auto industry consultant with a self - named firm in Stamford , Connecticut . “ The measure of how good a company GM is starts now . They have to show that they can operate this business by cleaning the balance sheet and investing in the business . ” Setting up the credit line , planning to pay debt and managing pension obligations all were either expected or prudent financial management that will help the company as it goes public , Keller said . GM has filed its registration statement for the offering with the Securities and Exchange Commission . The U . S . shares will begin trading by Nov . 19 , people familiar with the matter have said . GM will purchase the Treasury ’ s 83 , 898 , 305 Series A preferred shares at $ 25 . 50 apiece on the first dividend payment date scheduled to occur after the IPO , the department said . With the repurchase , taxpayers will have received $ 9 . 5 billion in repayments , interest and dividends from GM since the automaker emerged from bankruptcy in July 2009 , the Treasury said . The department said its total funds invested in GM include $ 13 . 4 billion under the Bush administration and $ 36 . 1 billion under the Obama administration . The Treasury said the repurchase of the preferred shares won ’ t change its stake in GM ’ s common stock . After the IPO , the Treasury may hold with less than a 50 percent stake in GM ’ s common equity . The company and the U . S . aim to hold an IPO of $ 8 billion to $ 10 billion , two people familiar with the plan said this month . GM ’ s commitment to reducing the obligations shows that its cash flow must be improving , said Joe Phillippi , principal of AutoTrends Inc . , a consulting firm in Short Hills , New Jersey . GM , which earned $ 2 . 6 billion in the first half , must expect to remain profitable amid U . S . new - vehicle sales that are running about 30 percent slower than the 16 . 8 million annual average from 2000 to 2007 , he said . “ We ’ re still not out of the woods with this car market , ” Phillippi said . “ If they weren ’ t showing strong cash flow , they wouldn ’ t take the risk . ” GM hasn ’ t said when it will report third - quarter results . The automaker ’ s 8 . 375 percent bonds due July 2033 , which were issued by old General Motors Corp . and convert to shares in the new GM , rose 1 . 375 cent on the dollar to 36 . 375 cents yesterday in New York , according to Trace , the bond - pricing service of the Financial Industry Regulatory Authority . That was the highest end - of - day price since May 4 . The company will keep pushing out new models and investing in factories as it works to improve its balance sheet . Since bankruptcy , GM has put more than $ 3 billion into its plants , Akerson said yesterday at a press event at a Cadillac plant in Lansing , Michigan . The plant will build a small Cadillac nicknamed the ATS to compete with Bayerische Motoren Werke AG ’ s 3 - Series line . GM also is introducing the small Chevrolet Cruze and the Chevrolet Volt , which runs on gasoline and electricity . Chairman Ed Whitacre , who will leave the board by the end of the year , had added funds to the product plan and pushed the company to develop a flagship sedan for Cadillac and to consider new models such as small pickups and minivans . GM is reviving its marketing efforts to sell the new products . In the months leading up to bankruptcy , the automaker ended its relationship with golfer Tiger Woods and pulled advertising from events such as the Super Bowl and the Academy Awards . Seoul - based Hyundai Motor Co . now is the exclusive national sponsor of the Oscars , Joel Ewanick , GM ’ s vice president of marketing and a former Hyundai executive , said at a press event on Oct . 27 . Ewanick started a campaign for Chevrolet with an ad that ran during baseball ’ s World Series on Oct . 27 to show the brand ’ s historic position in American culture . The campaign features young women taking babies home from the hospital in Chevy cars and people loading their dogs into Chevy trucks . Ewanick said GM will spend slightly more on advertising next year than the $ 2 . 5 billion the company spent in 2008 . Chevrolet will advertise during the Super Bowl , and Cadillac is considering marketing during television events like the Golden Globe awards . GM has also advertised during the MTV Video Music Awards and Country Music Awards . “ This is where America gathers to watch TV , ” Ewanick said . “ It ’ s the best way to start a courtship with a brand that some of them have forgotten . ” ( Bloomberg )