General Motors (GM) last made a profit back in 2004, so is great to hear them talking about the possibility of making a profit in the year ahead. The automaker recently made this statement at the second day of the 2010 Detroit Auto Show.
General Motors had its worst period last year when they had to file for Chapter 11 bankruptcy, this lasted for six weeks, but this did not go down well with the U.S. taxpayer, wondering why their money should be used to bail out a carmaker.
According to a report on Telegraph, Bob Lutz, GM vice-chairman said that making a full-year profit is dependant on the U.S. economy making a recovery, something that has looked very optimistic in recent months. Lutz also added that for General Motors to be come profitable, the U.S. Automarket would need to shift 11 to 12 million vehicles, compared to the 10.4 million sold last year.
Although, we have to remember that those sales were inflated thanks to the governments Cash for Clunkers scheme. This was put in place in the hope of enticing drivers in to getting cashback on old cars in exchange for purchasing a new fuel-efficient model.
If GM is to succeed, then they will have to try and crack the Chinese market, as Ford will do with their “One Ford” strategy. China has now become the world’s biggest automotive market, which is why it is so important and the recent news of the 2012 Ford Focus will also be destined for China.