Behind The Wheel
- Will Super Bowl Ad Buzz Generate Sales Buzz?
- Boeing Inspects 787 Dreamliner for Possible Repairs
- Will Toyota Rebound to #1 in 2012?
- What Fueled Record January Auto Sales?
- The Three Year ‘Pinch’ Is Helping New Car Sales
- Ford Earnings Disappoint, Causing New Concerns and Questions for Investors
- Are Ford's Best Days Behind Them?
- General Motors Struggles to Break Out From Uncle Sam's Shadow
- Will Tesla Crack the Range Anxiety Problem?
- Feds Send Message Clearing Chevy's Volt
MOST SHARED
- Exuberant Indian Markets Gloss Over Economic Reality
- Santorum Wins Missouri, One of 3 Republican Contests
- China Needs a Hard Landing to Cleanse System: Fund Manager
- Japan Firms Talk on System Chip Tie In Reform Drive
- How to Date a Wall Street Man
- Gold Holds Near $1,745 as Greece Buys More Time
- Greece Talks, Earnings Will Keep Markets on Edge
- Dr. Doom Thinks Rally Has Legs, At Least for Now
- Uptrend in Gold to Continue; Next Target $1,880: Charts
- Rio Tinto Says $3.4 Billion Earmarked for Iron Ore Boost
- Coke Is a 'Recession-Proof' Stock: Analyst
- Fund Manager: You Need Bond Income and Risk
- Beer Giant Taps Into Cider in a Bid for Growth
- Ahead of Disney’s Earnings: Ads and Cable Revenue at the Magic Kingdom
- How to Date a Wall Street Man
- The Real Cost of Overtime Is Higher Than You Think
- The Five Myths of Private Equity
- Forty States Sign On to Foreclosure ‘Robo’ Settlement
- Coinstar Beats Earnings Forecast on Redbox Growth
- Greece Talks, Earnings Will Keep Markets on Edge
- House Panel Moves to Fast-Track Keystone Pipeline Plan
- China Needs Hard Landing to 'Cleanse' Economy: Pro
- Gold Strength to Continue; Next Target $1,880: Charts
- Qantas Grounds an Airbus A380 Due to Cracks
- Greece Fear Factor May Have Caused Most to Miss Rally
- Four Members Resign From Yahoo Board, Including Chair
- China Buys Up Saudi, Russian Oil to Squeeze Iran
- Nouriel Roubini Is Bullish on Stocks—for Now
RSS FEED
GM--Give Them Credit For Putting Turnaround In Gear
![]() |
After all, the automaker's North American sales have been hit by the double whammy of slower production because the American Axle strike (remember, production drive revenues) has limited access to key parts and with the economy slowing down, the company's sales have deteriorated.
It looks like the naysayers are a bit overzealous in their predictions of gloom and doom. Today, the automaker posted better than expected earnings, losing $350 million in the first quarter (excluding charges) or $.62 a share. The loss was a dollar narrower than Wall Street estimates.
GM's bugaboo remains North America, where the the company lost $611 million dollars last quarter. As bad as that sounds, keep in mind the company built 100,000 fewer vehicles because of the Axle strike, and that hurt North America earning by $800 million. So, without that strike, GM would have been break even of better in its biggest market.
These numbers, along with Ford's [F
Loading...
()
] profitable first quarter, show Detroit's automakers may finally be turning the corner. Yes, much of the improvement is coming from lower costs, but in terms of profit per vehicle they are building momentum.
And with these numbers are coming after a rough quarter financially, it may be time for people to finally believe these guys can get back in the black for good.
Yes, I can hear the doubters saying the first quarter results pale in comparison to the performance of Honda [HMC
Loading...
()
] and Nissan [NSANY
Loading...
()
]. But, for now give GM and Ford credit. Their turnaround plans are gaining traction, and maybe, just maybe, 2 of the Big 3 are ready to once again drive profitably.
Questions? Comments?










