Is GM making its IPO at the perfect time – at the beginning of an auto upcycle?
CNBC’s Phil Lebeau thinks so.
He’s crunched the numbers and he tells the desk things are looking up at GM.
”In North America in 2008 GM was losing $1,191 for every car it sold. In the third quarter of 2010 it was making a profit of $3,005 and that’s just North America,” says Lebeau.
He feels there’s a great deal of pent up demand and that GM may be in a sweet spot – the beginning of an auto upcycle.
”Sales are projected to reach 13-14 million units in the next couple of years. That makes profits between $11-$13 billion,” Lebeau adds.
And it gets better.
”We’re looking at a period when there’s peace with labor," he adds. “Costs are under control and at least for the foreseeable period sales will be increasing. Those could be nice fundamentals.”
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