GM: back in black
General Motors has turned a profit in the first three months of this year. In honor of this achievement, you should blast AC/DC’s “Back in Black” from your stereo. This is the first time GM has made a profit since 2007.
GM emerged from bankruptcy last July. They earned $865 million with revenue at $31.5 billion. Last year, they lost $6 billion. Part of GM’s success has to do with Toyota’s problems. Ford Motors and Toyota earned more over the same period.
The International Operations unit deserves some of the credit, as the international sales rose 45% from last year. CFO Chris Liddell is hopeful that GM will remain profitable for the full year.
GM repaid its government loans in April, but the Treasury has a 61% stake in the automaker. Thus, strong earnings must continue in order for the government to receive everything back.