General Motors back in black after rescue

By Agence France-Presse
Thursday, February 24, 2011 9:36 EDT
google plus icon
  • Print Friendly and PDF
  • Email this page

NEW YORK — Leading US carmaker General Motors was back in the black after a massive government rescue, reporting Thursday full year net earnings of $4.7 billion for 2010 after deep losses in the previous year.

In its first annual report since emerging from bankruptcy reorganisation, GM said it had been profitable over four consecutive quarters, including $500 million net income in the fourth quarter ended December 31, even after net charges of $400 million related to repaying the federal government for its massive bailout.

The company said that it had officially returned to stable footing, with its audit committee ruling it was no longer hobbled by any “material weakness.”

“Our focus for 2011 is to build on our progress and continue to generate momentum in the marketplace. We expect our first quarter will be a strong start,” said chief financial officer Chris Liddell.

The company said it would pay out profit-sharing averaging $4,300 a person to 45,000 eligible GM employees, a recognition of the cuts workers took to earnings and benefits in the rescue.

The largest US automaker received 49.5 billion dollars from the Treasury and emerged from a bankruptcy restructuring in July 2009.

The report Thursday was its first annual report since raising $23.1 billion in in a public share offering in November.
“Last year was one of foundation building,” said GM chairman and chief executive Dan Akerson.

“Particularly pleasing was that we demonstrated GM’s ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters.”

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
By commenting, you agree to our terms of service
and to abide by our commenting policy.
  • Anonymous

    I will bet you that this headline will not be on FAUX NEWS. Prove me wrong.

    I just checked again: (google) Fox News GM

    results: (cricket noise)

  • Anonymous

    All CEOs who run their companies into bankruptcy should fall on their knives.

  • Anonymous

    wrong Denny, Faux News will promote this heavily because it bolsters their story that busting unions is profitable…

  • http://pulse.yahoo.com/_3WYAWTN4LJ2TAZGFCL3U4H6AWM TheGuru

    Hooray! Another victory for the American Union worker. I hope someone goes out on the floor of Congress next week, looks to the Right, and says “WE TOLD YOU SO.”

    If it were up to Boner and his buddies, the auto industry in this country would be belly up. As far as the Repugs are concerned, it isn’t as much as they succeed, but we fail. Well they lost again.

  • Mr. Neutron

    They didn’t bust the unions – the unions signed on, taking pay and benefit cuts. Now it’s working out for them.
    The only people that screamed and whined over the bankruptcy restructuring plan were a handful of bondholders that bought low and hoped to make a killing in a bailout.

    The Republicans thought it would be “more profitable” (for them) to outsource all car manufacturing to Japan and China.
    Detroit thought otherwise.

  • Anonymous

    Back in the black and making lots of cars.
    Unfortunately, it’s making them outside the US.
    Remind me why we bailed out this multinational without guarantees it would create jobs in the country that saved it.

  • Anonymous

    Go Chevy. I love my Malibu Hybrid. Buy American.

  • Johnny Warbucks

    Yeah, but who cares? The union was busted. Mission accomplished!

    And, coincidentally, Wall Street is broke too, but they’re withholding that bit of information until the appropriate moment. I rather suspect that the news will come out sometime after the presidential election. Stay tuned. Things are getting interesting.

  • Johnny Warbucks

    Don’t put you money on that one Denny boy. Remember, that Obama bailed them. That’s great fodder for the wingnuts. I’m certain they’ll make a big bruhaha out of it. However, you won’t hear a peep on Wall Street though. GM was the decoy for busting the unions.

  • Johnny Warbucks

    Yep. That’s exactly what I said.

  • Johnny Warbucks

    Watch FAUX and hear the NOISE.

  • Johnny Warbucks

    You bailed them out cause you had no choice. The government did it for you with your money without asking for your permission.

  • http://twitter.com/honorablelordk Karim Walker

    Good news, but I want them to bring jobs back to the US.

  • Anonymous

    google (search) :Fox News GM


    It’s been 7 hours……………

  • Johnny Warbucks

    Give ‘em time. They have to work on the spin, you know?

  • Mr. Neutron

    Unfortunately, it’s making them outside the US.

    GM makes a lot more cars in the USA than Ford does:

    If it didn’t make cars in other countries too, it would go out of business. Just like Apple would go out of business if it tried to do everything in just the USA.

    You’re guaranteed to lose GM”s 69,000 employees if they went out of business – and it would have dragged down another million people in support businesses – parts suppliers, dealers, and all the businesses that need them too, from pizzerias to ad agencies.

    Saving GM doesn’t save the American Economy which has been under siege by rightwing America since at least the days of Reagan – but it’s a start, saving about 1% of it.

  • Mr. Neutron

    The union wasn’t busted.

  • Mr. Neutron

    Kind of like the government starting a “War on Terror” without asking for your permission, but instead of killing millions of Iraqis and Afghans with $trillions of your money, you’re paying just $billions for a new generation of lithium-ion based plug-in vehicles, and will most likely get your money back – unlike the generous tax subsidies towards large SUV purchases under Bush. That money is gone. And so is Hummer.

  • Johnny Warbucks

    I’m kind of lost on what you said but from what I got, the lithium is coming from Afghanistan. They have to doubt of leaving till it’s all gone. Luckily, the insurgents have different plans. As for the Hummer…good riddance! Ditto for SUVs.