General Motors Predicts First Profitable Year Since 2004
November 18, 2010 by Special To Personal Liberty
The largest American automaker has predicted that it will enjoy its first profitable year since 2004.
According to the Christian Science Monitor, General Motors (GM) announced on Nov. 9 that it recorded a $2 billion profit for the third quarter, which is up 50 percent from the company's second quarter figures. Ford posted a $1.7 billion profit in the third quarter, while Chrysler reported a net loss of $84 million.
GM, which is set to begin trading its stock publicly on Nov. 18, has accrued $4.2 billion in year-to-date earnings after taxes and interest. A year after filing for bankruptcy, GM's third quarter results are expected to help the company pay back the Federal government, which approved $17.4 billion in emergency bailout funds for automakers in 2008.
In former President George W. Bush's memoirs Decision Points, he defends his decision to sign the bailout by saying he "had to safeguard American workers and families."
"I told Barack Obama that I wouldn't let the automakers fail," wrote Bush, quoted by The Detroit News. "I won't dump this mess on him."
Bush blames the auto industry's near collapse on decades of poor management, which was slow to recognize changes in the market. The former commander-in-chief said that lackluster leadership led GM, Ford and Chrysler to be "outcompeted" by foreign manufacturers.