Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

2/6/2012 (2 years ago)

Catholic Online (www.catholic.org)

Auto maker was in throes of bankruptcy three short years ago

Three short years after General Motors drove into government-run bankruptcy that required a massive taxpayer-funded bailout to keep it in business, General Motors says it's back on track to earning over $10 billion annually.

There's even more good automotive news to go around. Last week Chrysler, which also went through a government-assisted bankruptcy, unveiled its first annual net profit since coming out of its restructuring.

There's even more good automotive news to go around. Last week Chrysler, which also went through a government-assisted bankruptcy, unveiled its first annual net profit since coming out of its restructuring.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

2/6/2012 (2 years ago)

Published in Business & Economics

Keywords: General Motors, priofits, Chrysler, bankruptcy


LOS ANGELES, CA (Catholic Online) - According to a report in The Wall Street Journal, GM is already on track to achieve that goal. The Journal says they have seen the company's 2011 fourth-quarter results, which are due to be reported next week. The venerable U.S. auto maker is set to report net income of about $8 billion, its highest ever, which is nearly twice the prior year's $4.7 billion figure.

Growth in China and strong profits in North America account for the improved quarterly income, the Journal reported.

GM also plans to raise its profit margin, the portion of revenue left after paying expenses from the current 6 percent level to 10 percent over the next several years. Chief Financial Officer Daniel Ammann told the Journal that it would be the highest profit margin in the auto industry.

Losing billions of dollars and facing extinction in 2009, GM was forced to take a government bailout of about $50 billion and go through a government-run bankruptcy.

According to the report in the Journal, "Bailed out by the government just three years ago, General Motors Co. has set its sights on a once-unthinkable goal: making more than $10 billion a year.

"It already is headed in that direction. On Feb. 16, GM is likely to report 2011 net income of about $8 billion, its highest ever, according to people who have seen the figures. Behind the gain to nearly twice 2010's $4.7 billion are growth in China and strong profits in North America, where GM has shed billions of dollars of costs and lately has been able to command higher prices."

Financial analyst Jay Bookman is pleased by the news. "As we know, most Republicans, including Mitt Romney, opposed the Obama plan to rescue the U.S. auto industry, predicting it would be a terrible failure. It turns out that happily, they were wrong.

"It's also important to remember how much worse things might have gotten without the rescue effort. Ford, for example, strongly supported the rescue of its rivals out of fear that they too would get pulled down if GM and Chrysler were both allowed to fail," Bookman adds.

There's even more good automotive news to go around. Last week Chrysler, which also went through a government-assisted bankruptcy, unveiled its first annual net profit since coming out of its restructuring.

The rebound in Detroit could help the reelection efforts of President Barack Obama, who signed off on the controversial decision to bail out the auto industry.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2014
Peace:
That the Lord may grant peace to those parts of the world most battered by war and violence.
World Mission Day: That World Mission Day may rekindle in every believer zeal for carrying the Gospel into all the world.



Comments


More Business & Economics

Is it a sign of impending collapse? Financial savant Warren Buffett loses two billion in stock market Watch

Image of Warren Buffett recently lost $2 billion from investments in Coke and IBM, which have led some to believe that a stock market slowdown might be imminent.

By Catholic Online (NEWS CONSORTIUM)

Warren Buffett, the man known for focusing on long-term investment performance as apposed to making the quick buck, has lost $2 million in investments. LOS ANGELES, CA (Catholic Online) - Buffett owned Berkshire Hathaway investment house has large investments in ... continue reading


Christmas shopping in October? Apparently it's becoming a big deal Watch

Image of Shoppers are already out, despite the fact Halloween hasn't even arrived.

By Catholic Online (NEWS CONSORTIUM)

Shoppers are starting early with October 5 being declared by retailers as "Stock Up Saturday." Consumers are already Christmas shopping which means more of the revenue available to retailers will be harvested earlier in the shopping season. For retailers that choose to ... continue reading


List of Top 20 World Brands - Apple tops Google as world's leading brand for second time in row Watch

Image of The Apple Watch has enjoyed success in numerous fashion circles, featured on the cover of Vogue, among others.

By Catholic Online (NEWS CONSORTIUM)

Apple has topped Google as the world's most valuable brand for the second year in a row. The two companies are the only brands to be valued at more than $100 billion, according to the annual Best Global Brands report. LOS ANGELES, CA (Catholic Online) - ... continue reading


Here they come! China passes U.S. economy based on purchase power Watch

Image of Under President Obama's administration, China may surpass the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The International Monetary Fund (IMF) has reported that China has overtaken the United States and is now the world's largest economy, at least based on purchasing power parity (PPP). LOS ANGELES, CA (Catholic Online) - The IMF said that by the end of 2014, China ... continue reading


Rosie the Riveter would cry: Record 55,553,000 women not participating in U.S. workforce Watch

Image of The strides made by women in the workplace sadly isn't reflected in recent job statistics.

By Catholic Online (NEWS CONSORTIUM)

The strides made by women in the workplace seems to have gone up in smoke across the United States. The determined visage of Rosie the Riveter during World War II to women taking the place of men in hard industry - declaring "We can do it!" would certainly shed ... continue reading


400 wealthiest Americans now worth cumulative $2.3 TRILLION Watch

Image of Facebook founder Mark Zuckerberg has finally cracked America's most wealthy top ten at tenth place.

By Catholic Online (NEWS CONSORTIUM)

The rich, indeed get richer -- America's wealthiest are worth more than ever before. The United States' top 400 billionaires are now worth a dazzling $2.3 trillion, according to the latest edition of the Forbes 400. LOS ANGELES, CA (Catholic Online) - It comes ... continue reading


Record debt coupled with slow growth point to economic crisis, Geneva Report says Watch

Image of The Geneva Report says the rapid rise of public sector debt in rich countries and private debt in emerging markets, especially China, may lead to0 fresh economic crisis.

By Catholic Online (NEWS CONSORTIUM)

Record debt and slowing economic growth suggest the global economy could be heading for another crisis, the 16th annual Geneva Report warns. Commissioned by the International Center for Monetary and Banking Studies, the report predicts interest rates across the ... continue reading


Walmart to enter banking world with low-cost checking accounts Watch

Image of Walmart has been eying financial services for some time now.

By Catholic Online (NEWS CONSORTIUM)

Walmart is making its biggest venture into the banking world after several failed attempts in the past. The nation's largest retailer is joining Green Dot, already known for its prepaid payment cards, to supply checking accounts to nearly everyone over 18 years ... continue reading


The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Ephesians 3:2-12
2 You have surely heard the way in which God ... Read More

Psalm, Isaiah 12:2-3, 4, 5-6
2 Look, he is the God of my salvation: I shall have ... Read More

Gospel, Luke 12:39-48
39 You may be quite sure of this, that if the ... Read More

Saint of the Day

Saint of the Day for October 22nd, 2014 Image

St. Pope John Paul II
October 22: Karol J. Wojtyla, known as John Paul II since his October 1978 ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter