2010 proved to be very profitable for General Motors, Dan Akerson, the CEO, announces profit of 4.7 Billion dollars. Encouraging car sales in China, US and Brazil adds to rebound from bankruptcy.
This largest auto-maker has launched two new vehicles this year-Chevrolet Vault and Chevrolet Cruze Compact.
Though, GM still needs to struggle. The loss of $80 bn needs to be survived. But there are several other reasons as well.
Firstly, the lack of new business models adds to the loopholes. Secondly, the firm still needs to perform well in the European and British markets- a goal which seems difficult to achieve right now. Finally, the dramatic rise in gas prices might destruct the operations.
Fierce competition
GM has not updated its brand products like Chevrolet Impala, Chevrolet Malibu and GMC Sierra pickups. For 2011, it has only two new models to launch in the US Market- Buick Verano and Chevrolet Sonic subcompact.
On the contrary, the Chrysler Group, another multinational automaker which too faced bankruptcy has introduced 16 new models last year.
Fierce competition by Toyota Corolla and Honda Civic adds to the destruction. GM faces the constant threat of not being able to persuade buyers to invest in its smaller cars.
UAW would reap benefits
For United Auto workers, this is good news. After being blamed for the automotive industry crisis in the recession years, UAW is believed to play a restrained part this year.
Though, few believe that these high profits would have been impossible to achieve if GM did not undergo bankruptcy. The stupendous cut in employee numbers, complete revamping of management staff and revenue models has given birth to new GM.
shubhdachaudhary 