GM posts largest profit in 103 years in 2011
17 Feb 2012
Less than three years after emerging from a humiliating bankruptcy, General Motors (GM) has reported a record $7.6-billion profit for 2011, the largest annual profit in the US auto giant's 103-year-history.
After again regaining the title of the ''world's largest automaker'' in 2011, GM reported earnings of more than $2 billion in each of the three previous quarters and a total of $7.6-billion for 2011 - up from the $4.6 billion it earned in 2010.
It said overall global sales volume rose 7.6 per cent to 9 million for the year, while revenue rose 10.8 per cent to $150.8 billion. Although sales are still below pre-recession levels, GM's 2011 earning results beat its previous record of $6.7 billion in 1997.
GM, headed by CEO Dan Akerson, showed the results of the changes made during the bankruptcy process, when the Detroit-based auto maker was forced to close plants, shed weaker brands and reduce the number of dealers, which allowed the company to become leaner, nimble and more profitable than its hey-days.
Nearly all of its 2011 profit came from North America, where GM earned $7.2 billion, while it lost $747 million in Europe, of which, $562 million was lost during the fourth quarter alone, as economic conditions in Europe worsened.
''In our first full year as a public company, we grew the top and bottom lines, advanced our global market share and made strategic investments in our brands around the world,'' said Akerson.
