GM Closes Books on Third-Straight Profitable Year


  • 2014 Chevrolet Silverado Picture

    2014 Chevrolet Silverado Picture

    GM is aiming for "flawless new vehicle launches" on products like the 2014 Chevrolet Silverado to help power it to a fourth-straight profitable year. | February 14, 2013

Just the Facts:
  • General Motors on Thursday announced its third-straight profitable year, despite ongoing woes in Europe.
  • Operating income in 2012, before any one-time items, was $7.86 billion, down from $8.30 billion in 2011.
  • "This year our priorities will be executing flawless new vehicle launches, controlling costs, and delivering more vehicles to our customers at outstanding value," said Dan Akerson, GM chairman and CEO.

DETROIT — General Motors on Thursday announced its third-straight profitable year, despite ongoing woes in Europe.

Operating income in 2012, before any one-time items, was $7.86 billion, down from $8.30 billion in 2011. GM's fourth quarter operating profit rose 14 percent to $1.25 billion. GM's fourth-quarter revenue grew 3 percent to $39.3 billion. GM Europe reported a quarterly loss of $699 million from $562 million a year earlier.

"This year our priorities will be executing flawless new vehicle launches, controlling costs, and delivering more vehicles to our customers at outstanding value," said Dan Akerson, GM chairman and CEO.

Akerson said the automaker "took significant actions to put the company on a solid path for future growth."

Based on GM North America's financial performance, the company will pay profit sharing of up to $6,750 to approximately 49,000 eligible GM U.S. hourly employees.

"GM closed the books on a solid year," said Michelle Krebs, Edmunds senior analyst. "Like other major automakers, its strength came from North America. Now, onward to 2013, which could see further growth for GM if it successfully launches a host of new vehicles, in particular its hefty profit-generating full-size pickup trucks, the Chevrolet Silverado and GMC Sierra."

Edmunds says: GM hopes to ride to a fourth-straight profitable year on the strength of the redesigned Chevrolet Silverado and GMC Sierra.

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