GM Gets 2006 Books Off its Desk

March 14, 2007
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Pardon Rick Wagoner if he’s blasting a little AC/DC today, since GM reported that it made $2.2 billion last year, $180 million of it in the fourth quarter.

GM’s profits marked a $5.4-billion turnaround from 2005, a dismal year for GM that followed several years of shrinking sales.

The news for 2006 was couched somewhat by predictions of a larger profit, and dithering in the GM accounting offices which delayed the annual report for a few weeks.

On the fourth-quarter figures, GM actually made more money but pocketed some of it on its GMAC mortgage business – which will have to go back into the GMAC kitty to the tune of $1 billion, since the finance arm’s customers are defaulting on mortgages in ever-higher numbers.

GM says the year ahead is bringing more product investment, particularly in China where it’s largely off the books. New engines and new products are coming around the world, particularly in Europe and North America, where the company is still struggling to stabilize its market share.

GM sold 9.1 million vehicles worldwide in 2006—and more than half, or 55 percent, were sold outside the U.S.


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