As reported in today’s Wall Street Journal, GM’s CEO Ed Whitacre, Jr. proclaimed that General Motors will make a profit this year:
“My prediction is we will be” profitable in 2010, Edward E. Whitacre Jr. told reporters at GM’s Detroit headquarters, a sign of rising confidence that also sets a tough benchmark for the still-struggling car maker’s employees. “Do we have obstacles in the way? Yes. But we have a good management team and a good plan in place.” Mr. Whitacre, who also took the chief executive title temporarily last month, said the company’s new chief financial officer — Chris Liddell, who is joining GM from Microsoft Corp. — could “of course” be a candidate to become the company’s CEO. But he added “that’s up to the board” and noted the search for a permanent boss is still in its early stages.
My own purchasing decisions would have a miniscule impact on GM’s profitability in any case of course, but we’re not planning to buy any cars this year, or for the next several years. Both of our vehicles weren’t in fine shape,and given the significant financial hit we’ve taken thanks to the Great Recession of 2008 and counting, we wouldn’t be buying a new car any time soon no matter how many miles our cars had on them. Equally important, I don’t see that any of the new vehicles that GM has coming out as compelling in any way. The Chevy Cruze is perhaps as good as much of its competition in the small car market, but not better. The Chevy Volt, GM’s electric vehicle, will most likely be priced too high to justify as a money-saver for anyone, and I’ve never been a truck buyer and most likely never will. Frankly, given that GM’s CEO came from AT&T and its new CFO comes from Microsoft, I’m going to be concerned about the product quality of GM’s new cars.
Just my $.o2.
Aneil
Total Trust 