GM Posts Q1 Profit. Sign of Brighter Days Ahead?

by Gunnar Heinrich ::: GM posts profit

LOVE or hate the General and its tightened stable of four core brands, it seems universally encouraging that the automotive sector and GM that the car company propped up by American and Canadian tax dollars is turning a profit rather than bleeding more red. A sign of brighter days ahead?

According to GM: [our] first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.

That means $865 million Q1 profit, according to the BBC and GM’s press release.

Regarding the Saab sale, Saab CEO has said GM sold the Swedish car maker to Spyker for about $74 million. That figure differs from GM’s which is stated at $123 million.

Around that same period, Beijing Automotive paid $200 million for the old 9-3 and 9-5 assemblies which according to SaabSpyker CEO Victor Muller were funds that Saab banked – not  former parent company GM.

This suggests that the General is gaining ground on the back of a stronger product line.