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GM hopes to make profit in 2011 | GM hopes to make profit in 2011 |
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Troubled US carmaker General Motors (GM) hopes to return to profitability in 2011 after emerging from bankruptcy protection, court papers show. | Troubled US carmaker General Motors (GM) hopes to return to profitability in 2011 after emerging from bankruptcy protection, court papers show. |
The company's financial adviser, Evercore Partners, estimates that GM will lose $17.5bn (£10.9bn) this year before making a profit of $3bn in 2011. | The company's financial adviser, Evercore Partners, estimates that GM will lose $17.5bn (£10.9bn) this year before making a profit of $3bn in 2011. |
The estimate is based on GM selling 16 million vehicles a year, up from current levels of less than 10 million. | The estimate is based on GM selling 16 million vehicles a year, up from current levels of less than 10 million. |
A slump in sales forced GM to file for bankruptcy protection this week. | A slump in sales forced GM to file for bankruptcy protection this week. |
Gas-guzzling | |
The carmaker also announced this week that it had agreed to sell its Hummer brand of sports utility vehicles by the end of September. | |
However, reports suggest that a deal with China's Sichuan Tengzhong Heavy Industrial Machinery may be blocked by Chinese regulators. | |
Analysts say that the gas-guzzling image of Hummer does not sit well with China's attempts to develop an auto industry focused on smaller, fuel-efficient cars. | |
As part of GM's attempts to streamline its business, the carmaker has said it will discontinue its Pontiac brand and it has agreed the sale of its European arm. | |
Bankruptcy protection | Bankruptcy protection |
GM's move into bankruptcy protection is backed by the US government, which is expected to take a 60% stake in the carmaker. | GM's move into bankruptcy protection is backed by the US government, which is expected to take a 60% stake in the carmaker. |
The White House is also putting another $30bn into GM on top of the $20bn it has already given the carmaker. | The White House is also putting another $30bn into GM on top of the $20bn it has already given the carmaker. |
It is expected that GM may be able to exit bankruptcy protection within the next 60-90 days. | It is expected that GM may be able to exit bankruptcy protection within the next 60-90 days. |
US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors. | US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors. |
GM, along with carmakers across the world, has suffered from a massive drop in sales during the economic downturn. | GM, along with carmakers across the world, has suffered from a massive drop in sales during the economic downturn. |