GM hopes to be profitable in 2010

• Source: Xinhua
• [08:58 January 12 2010]
• Comments

US automaker GM, which exited bankruptcy in June last year, will repay the loans to the US government by mid this year and will be profitable in 2010, GM leaders said at the North America International Auto Show (NAIAS) in Detroit on Monday.

In an exclusive interview with Xinhua just after the opening ceremony of the auto show at the COBO Center in downtown Detroit, Tim Lee, president of GM International Operation (GMIO) said he is confident that GM will come back soon.

He said "from the business stand point, we'll repay the loans to the US government by the mid of the year, which is in the public record. We also said that we would like to initiate public offer stock share for the end of the year, if not, will be early of 2011."

With regards of what Whitacre, chairman and CEO of GM had said on the company's profitability, Tim said "he hope we will be profitable in 2010, and we all hope so."

Whitacre told reporters Monday Morning that GM will repay the balance of its $6.7 billion government loan by June and the government will make money.

Whitacre said the government bailout last year for the auto industry was well placed and the government had made a good investment.

Talking about GM's business in China, Tim said "I am very proud of our operation in China. We have a very good partnership with SAIC, we have a merging operation partnership with FAW on the commercial vehicle side."

"Our confidence on our plant for China is very strong. The market in China is continuing to grow, the market in China in 2009was actually larger than US market. We expect to see further growth in 2010," he said.

When asked what challenges GM is facing in China market, Tim said the challenges in China are very similar with the challenges in rest of the world. "We have to build great product with quality, liability and durability exceeding expectations from customers."

According to GM, the company's sales in China grew even more strongly than the national average, rising 66.9 percent last year to 1.8 million units, highlighting the importance of China for western manufacturers.

GM's sales in China accounted for a quarter of GM's total sales in 2009. The impressive sales performance of GM in China has also boosted the revenues of beleaguered western carmakers, including GM, which had a tumultuous 2009 that saw it enter and exit bankruptcy.