GM Expecting Biggest Earnings Since 2004

It appears that the severest part of the overall crisis in the auto market of the United States may now be coming to an end as General Motors Co. reports that it is expecting to post the highest profits it has been able to in the past 6 years. This comes thanks to strong sales all over the world and higher prices on the cars and trucks it is able to sell in the US market. Those with inside working knowledge of the situation have told the press that more than $1 billion in profits is what GM expects to pull in for the 2nd quarter of 2010 – a massive improvement over previous years. Edward E. Whitacre Jr., the Chief Executive of GM, came forward to say that he believes the sales reports for his company will be impressive for the 2nd quarter of 2010 and will help the company press its profits past the $865 million profit goal they had in the first quarter of 2010. This means that GM will surpass Ford Motor Co that earned $2.6 billion in the 2nd quarter of 2010 due to how well its operations had done in the US and at the global level, not to mention the profit it pulled in from the finance side of its business. Ford remains the Detroit, Michigan based auto maker that is king of the so called Big 3 in that city.

GM is marking a turning point with this 2nd consecutive quarter of profit because from 2005 to 2009 they were unable to turn a profit consistently and had to receive $50 billion in bailout funds from the US government in order to pull forward.

About the Author