Lutz: GM may return to profitability by 2010

During the past 18 months, GM has lost $57.5 billion – $15.5 billion of which was lost in the second quarter of 2008. But if all goes as planned, top executives are hoping that GM will start making profit in 2010. No firm date is set as of yet, but Lutz says that if GM can continue to cut cost, increase sale volumes and change up its models including small cars – the company can start making money again.

“Then I see a very good opportunity that basically I would hope that everything could be break-even to profitable,” Lutz told reporters at an event where it showed the press its 2009 lineup.

Lutz said that as of right now GM is losing money on all its models, however, small cars are close to reaching profitability since they are becoming more popular as gas prices go up. Nonetheless, a small car will never reach the profitability of SUVs or pickups, Lutz said.

 

Source: MSNBC