Monday, February 20, 2012

With Big Profit,GM Back On Top

General Motors came back last year to achieve the most profitable year in its history,earning a record profit of 7.6 billion dollars.This put it back in the spot of the world's largest automaker,displacing Toyota Motors.
We're growing profit,but we've got more work to do all across the company to get it to where we want it,said GM Chief Financial Officer Dan Ammann.We've been in a restructuring plan.It made over a billion dollar improvement,but clearly it's not going far enough in this environment.
We're in a discussion with our shareholders and other stakeholders.We had north of 11% return in the pension plan assets,which has helped us a lot.This is a long term game.We've got a lot of actions that won't bear fruit until two or three years out,Mr.Ammann indicated.
The record profit will be shared in the form of 7,000 dollar bonus checks for every GM autoworker.As part of its restructuring plan,GM closed 14 plants and three service parts operations.It had received 49.5 billion in government assistance.For the government to recover this,the GM share price will have to double.
As part of its 2009 bankruptcy,GM had closed more than 1,300 dealerships in the U.S. and Canada,evoking widespread bitter criticism.Thanks to Congressional action,a little more than half of the closed U.S. dealers,or 661,were eventually invited to apply for reinstatement based on their business metrics.
General Motors(GM),Toyota Motors(TM)

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