General Motors make record breaking profit in 2011 0
General Motors recorded their highest profit level ever in 2011. The company managed to record a $7.6 billion figure in profit, with $7.2 billion of that coming from the United States. Yearly revenue was increased by 11%. This equated to earnings of $150.3 billion turnover. Earnings before interest and tax was $8.3 billion which is up from the to $7 billion figure in 2010.
Beaten the previous record back in 1997
Compared to 2010, the difference in profit was $2.4 billion. The previous record of annual profit for the company was $6.7 billion which was achieved back in 1997.
European operations underperforming
General Motors European operations lost $747 million. This was a great improvement by $1.3 billion but it is the 12th consecutive loss for the company within the region. General Motors are considering completely dropping the Opel brand altogether. The European market for General Motors is currently struggling to match massive capacity figures with non demand. Some believe that it was a mistake not to sell off the Opel brand back in 2009.
Dan Ammann – “A lot of work still to do”
Dan Ammann is clearly aware of the problems that General Motors are facing and is not getting carried away with the tremendous amount of profit that the company has recently made. He said “We grew share around the world. Clearly, we have work to do in Europe and South America.”
Lucky workers within the country will receive $7,000 each based on shared profits. This is the highest figure of profit sharing since 1983 when the method originally started.
The amount stated is greater than what Ford are offering. Their $6.2 billion profits last year in North America equated to them sharing profits of $6,200 with each employee. Chrysler are paying out their staff $1,500 after making $1.97 billion profit, 85 per cent of which came from North America. There have only been two occasions when Ford and Chrysler have both been beaten on profit sharing payouts. Last year saw the record broken again but at only $4,000. Most years the profit sharing was only $1,000.
Senior salary paid workers will receive a 401k type pension. Some of the 26,000 will receive higher bonuses.
Ford has announced that their employees will receive bonuses and merit raises. This is the first time since 2008 that this has occurred.
Can General Motors improve their European operations and record even higher profits?