GM drives into the black

NEW YORK - General Motors is back in profit thanks to its restructuring in bankruptcy last year, but the US taxpayer is still sitting on huge losses from its investment.

The manufacturer posted net income of US$865 million ($1.2 billion) for the first three months of 2010, its first quarter in the black since 2007.

GM was kept out of liquidation by US bailout money and taxpayer loans last northern spring.

"We have achieved profitability," its chief financial officer, New Zealander Chris Liddell, said yesterday.

"The next step is to achieve sustainable profitability."

Bankruptcy allowed GM to slash its dealership network and shed debt, so sale increases are quickly flowing to the bottom line.

GM could be worth up to US$30 billion, analysts said, but that would not be enough for the US taxpayer to recoup its US$49.5 billion investment.

Only US$6.7 billion has been repaid.

- INDEPENDENT