• Mar 14th 2007 at 12:58PM
  • 18
General Motors reported its delayed fourth quarter earnings today and, lo and behold, managed to earn a net income of $950 million in the waning months of 2006. Compare that with last year's Q4 loss of $6.6 billion, and today's news is all the more incredible.
Again, those tricky one-time items skewed the results somewhat, since $770 million was earned in Q4 for the sale of GMAC, the automaker's financing unit. Still, without the one-time bump, GM managed to earn $180 million.

Cost cutting played a major role in GM's positive Q4 performance, as its vehicle lineup, at least in the U.S., is still a transitional mix of "old" and "new" GM product. Many highly anticipated new vehicles, like the Chevy Maliby, Camaro, and Cadillac CTS, have yet to go on sale. We expect the automaker's revenue from retail sales in the U.S. to keep climbing once the majority of its product portfolio has been turned over. GM also did well outside of the U.S., posting $228 million in earnings abroad compared with a $1.2 billion loss last year.

It seems clear, at least to us, that even if the GM turnaround hasn't officially turned the corner, it's got its blinker on and is just waiting for the light to turn green.

[Source: Automotive News]

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    • 1 Second Ago
      • 8 Years Ago
      Sure. With all the tricky accounting practices, the writing off of debt, the taking of fiscal quarter charges, etc... I won't believe it. Sounds like a ploy for a temporary reprieve from demanding stockholders.
      Union leaders? Are you serious? That's the problem with US manufacturers: paying $80,000+ to some GED holding schlep to grease an axel!
      The unions destroyed US automakers, and continue to do so. That's why they go to Mexico... and even China!
      The best part of the shrinking 2 falling apart is the eventual demise of the UAW.
      • 8 Years Ago
      I'm impressed that GM is not looking at this as a "get out of jail free" card. They see that they made a profit and are excited, but at the same time they realize there is still a lot of work to be done. Go GM! Now, if only Ford could learn that the reason why the 500 isn't selling isn't the name, it's the fact that it's a BORING car. Then maybe they could make a come back.
      • 8 Years Ago
      It's a shame the world's largest automaker still lost $2,000,000,000 last year.

      When will this figure be published in their annual report to shareholders?

      • 8 Years Ago
      Good job GM. Hopefully they can stay focused and avoid repeating past mistakes. I would like to see more good economy car choices from GM.
      • 8 Years Ago
      New competition for the Toyota Camra. This is the start of a turn around, as long as the wrong people don't put their fingers into the pie.
      • 8 Years Ago
      Like one poster said, GM lost what, 2 Billion for all 12 months in 06? It's sad when GM has to tout 3 months out of the year as their big news. This is not a turn-around, yet.
      When they MAKE $2 Billion per year profit, for 5 years in-a-row, then I will be impressed( well, they could match Toyota's 10-12 Billion in profits-per-year, and that would really be impressive).
      • 8 Years Ago

      Hey # 13

      Learn how to spell "axle" correctly, you friggin' tool.

      You're an idiot.
      • 8 Years Ago
      "Congratulations on turning a profit General. Hopefully you're not using that new math that Bathous guy is always going about..."

      Yes, Dick Expert, you are correct. That is America's new math. Toyota "creates" 2000 jobs while Ford sheds 10000 and we act like that is a bargain. Not my math, I'm just someone explaining the new math for those who don't see it.

      These jobs, "created" and destroyed are directly connected, no question about that.

      But I will concede to your near perfection in which you so obviously exude. I could never compete with someone who does everything at nearly a level 10. I am resigned to understand that I could never create a vehicle as good as most GM vehicles and that all the Terrell Owens in the automotive would could not do so either, so I give do respect. Nothing short of a crime, is it not? Not a hard concept to squirrel away.

      Hopefully GM can make a profit for at least the next 166 quarters.
      • 8 Years Ago
      That's great news, especially for the union leaders. It'll come in handy for them during contract negotiation time.
      • 8 Years Ago
      Good news! Now it is Ford's turn.
      • 8 Years Ago
      2,000,000,000 / 365 = $5.47 MILLION DOLLARS each and EVERY DAY!!!

      Everyone...EVERYONE!!!! BONUSES FOR ALL!!!!

      JOB WELL DONE!!!

      Is THIS what they call TOTAL QUALITY MANAGEMENT?!?!

      ...or is this all a part of the gay-bathous modern day mathematics?
      • 8 Years Ago
      I anticipate this new "Maliby."
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