May 17th, 2010
09:37 AM ET
13 years ago
GM back in the black
NEW YORK (CNNMoney.com) - General Motors returned to profitability in the first three months of the year, the automaker's first profit since 2007.
The company, which emerged from bankruptcy last July, earned $865 million in the period, on revenue of $31.5 billion. A year ago the predecessor company lost nearly $6 billion on revenue of only $22.4 billion, as sales plunged and the company hurdled toward bankruptcy.
GM had reported losses the two previous quarters since emerging from bankruptcy, but the profit in the most recent period was expected.
From CNN Politics
- Lawmakers reluctant to pursue gun control measures following Nashville school shooting
- 10 Cards Charging 0% Interest Until 2024
- DeSantis plans to travel to Jerusalem as tumult strains Netanyahu-Biden relationship
- Harris faces painful Black history in emotional slave outpost visit
- Kentucky law aimed at increasing parental oversight in education takes effect
- New York grand jury won't hear Trump case again this week
Here's what is missing in this story:
The Obama Administration wasted $8 billion of taxpayer dollars by trying to keep GM out of bankruptcy. As is clearly seen here, some companies need to go into Chapter 11 bankruptcy, which is why it was created, to fix their terribly mismanaged books.
Instead, the administration made a terrible economical blunder, threw good money at a horribly gasoline fire, and wasted a needed $8 billion.
GM is back in the black thanks entirely to President Obama, and no thanks to any Republican. Let everyone who works for a living remember this.
I hope they start making smart cars instead of the behemoth SUVs/gas guzzlers they think people want.
Idiots. I'm not bailing them out again.
It would be nice if they told the truth, instead of claiming they "paid off" their government loans.
That is again, the sort of bad behavior, that makes global corporations, not only bad US citizens, but bad world citizens.
Considering that Repug Politicians such as Mitch McConnell like to claim that our socialist president has taken over GM, I guess Barry is doing a good job.
And thanks, Mr. President, for all the jobs you saved.
The right wingnuts wanted GM to fail, opposed the government loan, and thought everyone would want to drive a non union made Toyota. GM paid back the loan, and the government not only saved 400,000 jobs for auto workers, but a huge number of workers in auto related businesses.
The GOP remains out of touch with reality.
...and without the government support,that GM and several other companies received, it and dozens or hundreds of other businesses would still be grappling with bankruptcy,many of GM's suppliers would have shut down, the government would be paying billions more in unemployment compensation, and the European economic crisis would have been worse.
So GM is seeing a profit now. I guess those on the right still think we should have let our car munufacturing just fail huh?
If you look at the reported figures, GM would have lost even more this year had the sales not been so good. They posted 9 billion more in sales. yet less than a million in profit. The six billion loss last year would have been wiped out by that 9 billion dollar sales increase depending on actual costs.
Of course no one will ever say that the bailout helped in making this possible. Back then everyone was screaming for the government to get involved and now it is taboo to think that the government should have ever done anything, thanks to the tea people of course. Those darn snapplehead.
And the GOP, and it's evil spawn Tea Party, just wanted to let GM go under. With it's network of parts suppliers and small businesses that profit- even survive- directly from GM factory orders and the money that it's employees spend from their paychecks, your talking hundreds of thousands- even millions- of jobs that the GOP almost cost us. Don't they ever tire of being wrong?
where are the GTP(Grand Tea Party) people.I guess it would have been better if we had trown GM to the junkyard.After all they said its a bancrupt company and should not get a bailout.Well seems to me these people just dont get it.Complete lack of economic policy.If we have done it the Republican way-well there wouldn't be such a success story,after all GM would have been history.Thank god the Grand Tea Party was not in charge in 2009.
When are they going to pay us back with something otheer than our own money?
GM repaid its government loans in April, but most of the help was in return for Treasury receiving a 61% stake in the automaker.
--------------------------------
Well, well, well. It looks as if Obama DID NOT take over GM but was actually looking to HELP it get through the recession. And lookit, GM is in the BLACK. Who would've thunk it?
Now put Pontiac back on the road and I might purchase GM again.
Al ling as Obambi owns GM I will shop else where.
I don't care what Paranoid Palin and her tea sacks say – I'm glad the gov't helped save a "made in the USA" company that employs so many true United States Citizens.
Stop the hate, fear, paranoia.
It takes working TOGETHER to clean up the 11 billion/month wars mess from the past 8 years. Only Haliburton and Big oil profited from that as our young people died.
Sick of the paranoid lies.
hey were are the tea party conservatives and Palin that were yelling and
screaming about government spending on bailing out companies
like GM that is now paying us back with interest five years early
saving american jobs and a american company thats being a real
patriot a real american not a republican who could care less about
the middle class that has no solution but by only being the party of no
A company that still owes taxpayers 53.4 billion dollars for their bailout can't really say they are in the black. Must be that new math.
Last month GM announced it had paid back it's government loans, they lied! How can anyone believe the nonsense they say now?
I like to see so praise and correct be giving to President Obama for making a risking decision to bail out GM and now it paid off. I am so tried of the Media not pointing out the good decision the President have made. I blame the media for all their negative story regard President Obama and his Administration. And blame the media for keeping Sara Paling loser in the media always talking bad on the President. I wouldn't get have the coverage if she was a black female or ugle. How about spending more time on the Obama's family instead of Sara Palin in her Jerry Springer family.
Congratulation GM, well done! As the saying goes, As GM goes, so goes the Nation.
Let's see how the gop spin this. btw 2010 elections is coming up, so when will the gop start running on their record. oh thats right their record is not good with the american people.
They could probably pay back the billions of tax dollars we poured in if they would completely dump all of the contracts they have with the UAW and hire new people and stop paying all of the old out of date contracts they have.
GM is still broken... by my math, a year ago they lost $6B on $22.4B revenue... that's roughly an operating cost of $28.4B... now, they have a revenue of $31.5B and all they manage to do is earn $865M??? That means that their operating cost was around $30.6B... an increase of approx. $2B. Pathetic.