GM Likely to Become Profitable Before Ford

Ford Motor Co. is scheduled to report its financial results for the second quarter Thursday, and company insiders say that -- while it is still operating at a loss -- they will demonstrate that the Dearborn automaker remains on track to meet its stated goal of returning to profitability by the end of 2011.

General Motors, on the other hand, is forecasting profits as early as 1st or 2nd quarter of 2010. This suggests that GM may actually be a profitable company for more than a year before Ford. If everything unfolds similarly to these projections, this could be very good for the ailing public perception of GM. By being the only profitable domestic automaker, they will be showing the public that the company truly is a new company that is ready to lead the auto industry as it did many years ago.


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Joe_Limon - 7/20/2009 1:16:08 PM

+5 Boost

Makes sense... Ford still has all the debt to pay off...

montyz81 - 7/20/2009 1:34:18 PM

+4 Boost

So true. I hate that this article makes GM look better then Ford. Ford is doing it the right way. GM is taking the cheap way out, using my money to do it too.

inspirion7 - 7/20/2009 1:56:23 PM

+4 Boost

I would think, the faster to profitability, the faster they can pay back the loans. Doesn't that make sense?

Joe_Limon - 7/20/2009 1:58:52 PM

+2 Boost

It's harder to be profitable when you have 160 or so billion that you are making payments on ;)

thstone - 7/20/2009 3:26:14 PM

+1 Boost

Define: Profitable

Let's see, GM got $50B in new money plus left $180B in debt to the "old" GM. Sure seems like that would help "profitability".

dumpsty - 7/20/2009 9:52:29 PM

+1 Boost

Many of the (old) GM creditors will take far less than what is originally owed to settle up on GM's debt. Though the debtors will eat-it in end. They're going to want to show (new) GM that they still like them so the (new) GM will want to do business with them as its profits increase and their business gets stronger.

quizz - 7/20/2009 9:32:52 PM

+2 Boost

The "new" GM has NO debt - all the debt was spun off into a different company that will be liquidated. The New GM is debt free.