Resurgent General Motors posts record $7.6-billion profit for 2011
- February 16, 2012
Just three years after its 2009 bankruptcy filing, the automaker surpasses what it earned during its heyday in the mid-1990s.
Three years after nearly collapsing into liquidation, a resurgentGeneral Motors Co.has posted its best annual profit, surpassing what it earned during its heyday in the mid-1990s.
In earning $7.6 billion last year, the automaker demonstrated how it has capitalized on its 2009 bankruptcy reorganization and federal bailout to shed brands, slash debt, rewrite union contracts and close surplus factories.
The record annual earnings represented "a remarkable turnaround from what appeared to be a hopeless situation," said Jesse Toprak, an analyst with automotive information company TrueCar.com.
GM now has about a $2,000-per-car manufacturing advantage over its Japanese and European rivals, a swing from a similar-sized disadvantage before the restructuring, said David Cole, chairman emeritus of the Center for Automotive Research.