GM hopeful of profit this year

The chairman and CEO of troubled automaker General Motors (GM) has announced he is hopeful the company will return to profit this year.  Almost six months after GM emerged from bankruptcy, Ed Whitacre has predicted that the Detroit-based automaker will make money in 2010, while acknowledging there are still obstacles to be overcome.  The company hasn't made an annual profit since 2004 and wasn't expecting to do so until 2011.  It made $88 billion in losses from 2005 through the first quarter of last year.  WhitacreÔÇÖs expectation for ÔÇ£positive net income,ÔÇØ which he announced yesterday in a meeting with reporters, is perhaps prompted by a slow recovery in the auto market and an overall improvement in the state of the economy.  December saw vehicle sales hit their highest rate of any month in 2009 except for August, when the ÔÇÿcash for clunkersÔÇÖ deal caused a spike.  WhitacreÔÇÖs hopes are also likely driven by improvements in home sales and pricing, two key drivers of auto sales.  GMÔÇÖs sales in December were up two percent at the four brands it is keeping: Buick, Cadillac, Chevrolet and GMC.  GMÔÇÖs largest shareholder is the US government, with 61 percent. The other stakes are held by a United Auto Workers retiree trust; the governments of Canada and Ontario; and what remains of GMÔÇÖs bankrupt predecessor, now known as Motors Liquidation Co.  Whitacre was named chairman of GM by the Obama administration after the company's restructuring last summer. He also assumed the role of CEO after Frederick Henderson left, following pressure from the companyÔÇÖs board.  One of WhitacreÔÇÖs top priorities is now to position the company for a public stock offering that will help taxpayers recoup some of their investment. He said that an offering could be made by the end of this year.  Whitacre also impressed that GM executives had been given targets to increase market share this year.  Ford Motor Co. has also made a positive prediction for 2010, reporting almost $1 billion in net income in the third quarter and an expectation to be "solidly profitable" by 2011.  Chrysler Group LLC, which also underwent restructuring as a result of its government-funded bankruptcy, has forecast it will break even in 2010 and make money in 2011.  *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *