Richard Wagoner, chief executive officer at General Motors, told CNBC’s “Squawk Box” that he’s confident the company’s North American operations can be profitable.
“We’re basically running at a breakeven level,” Wagoner said Thursday. “I think it reflects a couple things. The relatively weak market we’re selling into, particularly on the retail side, although retail sales were up a little in the first quarter. We cut back a lot of low-profit business – fleet and daily rentals – and those were one-time cutbacks that we needed to do.”
General Motors lost $46 million in its North American business in the first quarter, compared with a loss of $292 million for the same period a year ago.
Overall, the company reported a first quarter net profit of $62 million, or 11 cents a share, down from $602 million, or $1.06 a share, in the same quarter a year ago. Revenue fell to $43.9 billion from $52.4 billion. Wall Street analysts expected the company to earn 87 cents a share on revenue of $40.88 billion.