Monday, November 16, 2009, AM | 7 Comments
Wall Street Journal reported Sunday, Nov. 15 By JOHN D. STOLL that General Motor’s turnaround effort will come under new scrutiny Monday as the company reports financial results for the first time since emerging from bankruptcy.
GM is expected to update its cash position, indicate how close it is to earning money in North America, and give a progress report on restructuring its Opel unit in Europe.
One part of its strategy appears to be working and that is its operation in China. GM’s sales are expected to have doubled in China in the third quarter from a year earlier and are now running neck and neck with the Detroit auto maker’s U.S. sales.
The company’s 478,000 vehicle sales in China helped GM remain a relevant player on the global auto stage, and – more importantly – provided much-needed profit for GM’s international operation, according to a person familiar with the results. The country now accounts for at least 25% of GM’s global sales, compared with 10% a year ago.
To be sure, GM needs to turn around its ailing North American business if it hopes to be viable. The U.S. serves as the hub of GM production and is still seen as offering the most profit potential of any market in the world.
In a Nutshell
GM has laid off many employees for more than a year now. It’s good news for the economy in general and the laid off employees in particular when, hopefully, GM will start rehiring them. That will be the best news.
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