GM eyes return to profit in 2010
Posted by admin on 30 August, 2008 under Business news | 
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US car giant General Motors (GM) is hoping to return to profit in 2010, a top executive at the firm has said.
In the past 18 months, GM has lost $57.5bn (£31.36bn), $15.5bn in the second quarter of 2008 alone.
GM has closed factories and laid off staff but has struggled to counter a slowing economy and rising fuel prices.
If GM continues to cut costs and car sales recover in 2010 “we would hope to have the corporation profitable again by then,” vice chairman Bob Lutz said.
But he added: “At this point, the future is so cloudy in terms of the development of the market, when it’s going to pick up again.”
The company is losing money on all its model lines, Mr Lutz said.
Prices for small, more fuel-efficient, cars should rise as demand grows, he added.
Hummer slowdown
High fuel costs have dampened demand for the large sports utility vehicles that GM is known for.
The company has previously said it will consider selling the iconic Hummer brand.
Among the mooted buyers are Russian Machines, the engineering firm which makes trains, planes and some automobile parts and Indian carmaker Mahindra & Mahindra.
GM bought the Hummer brand in 1998. In June, Hummer sales were slightly over 2,000, well below their peak.
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