Did GM Lose Money Again In Q1?
Don’t ask Chairman/CEO Ed Whitacre. His only comments so far on GM’s Q1 2010 performance comes from a memo leaked to Reuters, in which he says:
In January, I said we could earn a profit in 2010, if everything falls into place. Our first quarter financial results will show us an important milestone, and I’m pleased to say that I anticipate solid operating results when we report our first quarter financials in May“Important milestones”? “Solid operating results?” What the hell is Whitacre trying to say?
Given that GM’s 18.7 percent Q1 market share is down nearly a full point from its 2009 number (19.6 percent) despite industry-leading spiffs, we’d guess he’s soft-pedaling another weak quarter. Whitacre has said that profitability is within reach of the bailed-out automaker this year, but if The General can’t eke out a quarterly profit soon, there will be precious little time to gin up a successful IPO this year. And with the 2012 election forming a likely political deadline for government withdrawal, each quarter spent in the red puts that much more pressure on GM.