Sitting at the helm of a company that has lost money consistently every year since 2005, GM CEO Ed Whitacre has expressed his optimism that GM will actually show a profit in 2010. GM lost $1.2 billion in the last quarter of 2009, while Toyota and Ford both showed a profit.
Whitacre, who assumed the position of CEO on December 1, intends to focus on sales growth, rather than expense slashing in order to boost profitability. The company has not seen an increase in market share since 2002, and the same has plunged from 44% in 1980 to under 20% in 2009.
“You can always take out more cost, but we are focused on the revenue side if you want to prioritize it,” Whitacre said.
In order for the government to completely recoup its investment, GM would have to go public, and Whitacre said that is not necessarily contingent upon profitability, though it would be helpful.
– By: Stephen Calogera
Source: CNN Money