Dan Akerson, CEO of General Motors. Photo / AP
General Motors scored its most profitable year since the nineties in 2010, according to the first annual results since it emerged from a government-sponsored bankruptcy reorganisation.
The company posted a US$4.7 billion ($6.2 billion) profit, after increasing production to 8.7 million vehicles worldwide, in a result that its chief executive
said proved that GM could stay in the black even in the toughest economic times.
"Last year was one of foundation-building," said Dan Akerson, chairman and chief executive officer. "Particularly pleasing was that we demonstrated GM's ability to achieve sustainable profitability near the bottom of the US industry cycle, with four consecutive profitable quarters." The bankruptcy process, forced by the Obama Administration, enabled GM to shed factories, dealerships, brands and billions of dollars in pension liabilities in the US, in return for handing large shareholdings to the government and the United Auto Workers union.
GM's European division lost US$568 million in the final three months of 2010, taking its total loss to US$1.8 billion.
GM shares returned to the stock market last November at US$33. For US taxpayers to break even on their US$50 billion investment in the restructuring, the Treasury must sell its shares at an average of US$44, but yesterday they were trading back down 5 per cent at US$33.05.
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