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Apr. 7 2010 - 2:02 pm | 93 views | 0 recommendations | 0 comments

GM posts loss, but foresees profit by year’s end

For the million-billionth time in a row, General Motors once again posted a big loss today.

GM reported a $4.3 billion 2009 net loss covering the period from its emergence from bankruptcy in July through the end of the year. The automaker said it was committed to repaying the outstanding balances on its U.S. Treasury and Export Development Canada loans by June “at the latest.”

Completing the “fresh start” accounting process lays the groundwork for GM to launch an initial public offering that would reduce the U.S. government’s majority stake.

GM Chief Financial Officer Chris Liddell said in a conference call that he was “incredibly encouraged” by the automaker’s progress in its turnaround.

“General Motors should never again be in the financial position it found itself in last year,” Liddell said.

via GM posts $4.3 billion loss, says 2010 profit possible | Reuters.

The CFO’s optimism may not be misplaced.

The company has a number of promising new cars in the pipeline, such as Cadillac’s huge and luxurious XTS, Chevy’s hyper efficient Cruze and Volt (the latter of which is expected to have an EPA rating of 230 miles per gallon), and the Buick Regal, a sporty import from the company’s German division.

These products, coupled with a smattering of labor and management concessions, the PR woes of rival Toyota, and the sale or closing of GM’s least viable businesses – Saturn, Pontiac, Saab and Hummer – could mean a turnaround for GM, which hasn’t turned a solid profit in three years (make that ANY profit).


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    About Me

    I have more than a decade of journalism experience covering a variety of automotive, financial, and community news topics. Specifically, I've written for the Daily Record, National Underwriter, Institutional Investor and helped ConsumerSearch set up its car and truck review section as its founding Automotive Editor. Being fascinated with vehicles since I was a wee lad, I've piloted an ancient Mercedes 300SD across the country, pedaled thousands of miles on a Bianchi Volpe, gone go-carting in Europe, and broken my shoulder falling off a Yamaha Seca.

    Like most writers, I hope to achieve immortality before I die.

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    Contributor Since: January 2009