GM clocks in with a $3.2 Billion first quarter profit!

From the Detroit News:

Detroit— General Motors Co. posted a $3.2 billion profit during the first quarter – its fifth consecutive quarterly profit, and further evidence the automaker continues to build momentum after its 2009 bailout.

“It’s a solid quarter,” GM’s Chief Financial Officer Dan Ammann said this morning. “It’s good progress. It sets up a good foundation for the rest of the year.”

Revenue from January through March was $36.2 billion.

The first-quarter results also included a number of one-time gains, including $1.6 billion from the sale of its interest in Delphi Automotive, and $300 million for the sale of preferred shares in Ally Financial, Inc., the financial arm formerly known as GMAC. Excluding special items, interest payments and taxes, GM earned $2 billion, compared to $1.7 billion in the first-quarter last year.

The financial results – GM’s best first-quarter results in more than a decade — benefited from growing demand its fuel-efficient vehicles, like the all-new Chevrolet Cruze, and robust sales in China, where GM is a market-leader.

Read the full article.


New GM saving General Motors?

GM is going all out to find their next leader.

This article brings up a good point that the new GM has shed debt and restructured manufacturing to the point that the savings per vehicle is in the 5k range. The new CEO has a real chance to save GM from itself and I keep thinking Ford’s Jim Farley or Mark Fields might be the right person!

From the Detroit News:

Ask people in Washington or on Wall Street who they want to see running General Motors Co. and the answer is the same: another Alan Mulally.

In the three years since Bill Ford Jr. hired him away from Boeing Co. to lead Ford Motor Co.’s turnaround, Mulally has transformed the Dearborn automaker from the then most troubled of Detroit’s Big Three to the strongest. Without any experience in the auto industry, he ended Ford’s decade-long decline in U.S. market share, changed its notoriously careerist corporate culture and secured enough financing to allow it to weather the economic crisis without resorting to a government bailout.

But while Mulally may have been an outsider, experts say he was an outsider with skills and experience that qualified him to lead an American automobile company.

Read the entire article here.


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