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GM back in the black

GM back in the black
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General Motors is reporting profit in the final three months of last year of 719 million euros. That is its first quarterly profit in two years and follows a five billion euro loss in the same period a year earlier. In all of 2006 it lost just over 1.5 billion euros, down from 7.9 billion in 2005. But the company said no one is declaring victory and it would not predict continued profitability through the year.

GM is part way through a massive restructuring that includes eliminating 34,000 jobs and closing 12 factories. Releasing the figures, GM said nothing of any possible tie-up with Chrysler, which – like the other big US manufacturer Ford – suffered major losses last year. GM’s Chief Executive, Rick Wagoner, said: “I can’t comment on what may or may not be going on.”

GM is one of several companies that have been mentioned as a possible buyer if DaimlerChrysler decides to sell its US division. Another name to be added to the list is buyout firm Cerberus Capital Management which has just increased its chances by hiring Chrysler’s former chief operating officer Wolfgang Bernhard.