Not sure how but GM pulls in record profits, still owes taxpayers
What I don’t get about GM’s record profits is that they are losing revenues around the globe like it was water in a fishnet, yet they raked in 7.6 billion in earnings in FY2011.
I’m guessing that their eco and economy size cars (and Cadillacs) are really carrying the load because I don’t see many of the bigger GM’s on the road these days and I live in the car capital of the USofA, Los Angeles.
Cadillac has also been doing great, or at least it seems. I had a CTS-V until I crashed it and it was a beautiful car. The newer models are even better and what sweetens the deal is that most people are actually attracted to the Cadillacs. Especially the younger range of consumers.
But here’s the thing I don’t get, I still don’t see enough GMs on the road for this turnaround coupled with foreign losses to equate to such huge profits. Record breaking, in fact, untouched since 1997.
So this leads me to believe that one of a few things are happening:
1. GM must have shed an exuberant amount of salaries, penchants, benefits and other union costs.
2. They’ve figured out a way to produce more efficient cars. Both in quality and/or costs of production and in cost of parts. This means that GM finally figured out how to properly engineer and oversee an efficient production process, or they’ve resorted to cutting corners. 7.6 billion of them, to be exact.
3. They’re lying to us about something.
It’s most likely to be a combination of all 3. But good for GM and good for America. Now pay back the rest of the billions you owe US taxpayers.
Still think Detroit’s going bankrupt? Check out GM’s killer numbers
- $4.7 billion General Motors’ posted earnings for the 2010 fiscal year
- $7.6 billion General Motors’ posted earnings for the 2011 fiscal year source
» What a record to break! One year removed from bankruptcy, American automaker General Motors posted record-setting earnings for the 2011 fiscal year. In recent weeks/months many investors worried that GM’s overseas operations would drag down the company’s year-end totals. GM lost a total of $747 million in European markets, with $562 million of the losses occurring in the fourth quarter alone. In South America, where the company reported $818 million in earnings for 2010, GM reported a net loss of $122 million. However, not only did the company defy global expectations, GM managed to break its former $6.7 billion earnings record, set in 1996.
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