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Commentary: GM On the Rise



How quickly things can change. About this time, a year ago, the word most commonly associated with General Motors was “bankruptcy.” But as the automaker rolled out a string of hot new products at this year’s Detroit auto show, while sweeping to victory in the North American Car and Truck of the Year awards, one heard a different term entirely: “turnaround.”

What’s happened over the last twelve months? We in the media can be a fickle lot, I’ll admit, and compared to Ford, GM looks good these days. But one cannot dismiss the dramatic improvements the industry giant has been making. Productivity is up, and so is quality. Products like the Saturn Aura, Chevy Malibu, and Cadillac CTS are unquestionably world-class. GM has shaved $9 billion in structural costs and is working to trim even more.


So if you add it all up, it’s got a lot of momentum going for it. That said, the competition is only getting tougher and in some areas, the work has only begun. Company insiders say their biggest concerns are arrogance and complacency.


If GM starts declaring victory, sell your stock.


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