General Motors has said that it earned $2 billion in the third quarter of this year. This is the third consecutive quarterly profit GM has made due to its pickup trucks and consumers paying higher prices for its vehicles. At this time last year, the company had a $1.2 billion loss immediately after being saved out of bankruptcy. GM has reported earnings per share of $1.20 compared with a loss of 73 cents a share in July 2009. This is due to the company cutting costs.
The automaker reported that it made $1.4 billion on its operations. GM has said that this year will be the first annual profit since 2004. The company has seen U.S. sales improve and fast growth in China and other markets as well. On average, the auto maker earned an average of $3,005 on each vehicles it built. This compares to Ford earning an average of $2,710 on each vehicle and Chrysler only making $593 per vehicle.
GM has seen consumer trends change in the past year. According to officials, “The trend toward buyers favoring trucks could be a troubling sign for auto makers as GM and its rivals prepare to launch a string of small cars-largely in response to stricter U.S. fuel-economy standards,” said Rebecca Lindland. The recent profits have helped GM pay back some of its bailout money and also pay for pension plans.
With new management and a better runned company, I am confident that GM will continue to do well. The company has done a lot to change itself, and it is using the bailout money wisely. It is trying to reestablish itself in the marketplace and be a major competitor overseas.
Source: http://online.wsj.com/article/SB10001424052748703805004575606200306436706.html?KEYWORDS=auto
I feel as though GM should continue to do what it does best, and that is continuing to produce trucks. If that is what the consumers are interested in, then it should not try to compete with other manufacturers and produce smaller vehicles. There has to be ways of creating more fuel efficient trucks. Until then, GM should not completely turn away from the production of trucks for the stricter U.S. fuel-economy standards.
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