May 21, 2010

IF HE DID THE SAME WITH THE FEDERAL GOVERNMENT THE UR WOULD GET HIS SECOND TERM:

The medicine starts to work: Profits are back at General Motors, but it is too soon to declare a return to health (The Economist, May 20th 2010)

The reasons for the turnaround are easy to fathom. The painful measures taken before and during GM’s period in Chapter 11 bankruptcy last year, which included closing factories, terminating brands, cutting back its dealer network, reducing benefits for retired workers, establishing new labour contracts and slashing debt from $54 billion to $14 billion, have transformed the competitiveness of the firm’s previously mired North American business.

Critically, the sales break-even point in GM’s home market has been lowered from about 16m vehicles a year to nearer 10m. With demand slowly picking up to an annualised sales rate of 11m in America so far this year, GM’s North American operations turned a corner, producing an operating profit of $1.2 billion.

Posted by Orrin Judd at May 21, 2010 5:48 AM
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