Detroit’s General Motors release bumper profits and says it’s gonna get even better
Detroit’s biggest car manufacturer, General Motors has releases it’s first quarter profits for this year in the amount of $865 million. This is much better than expected and great news not just for the stock holders and the government who gave them a $50 billion bailout package not so long ago. It’s great news for employees and would-be employees looking for work in ‘motor city.’
The chief executive went on to say “if you liked our first quarter financial results, stay tuned for our 2nd quarter. You will like it, it will be impressive.”
Not so long ago communities were angry about the closure of some plants, and dealers were frustrated about the decision to close a lot of it’s franchises.
Now things are looking very different indeed. Now dealers are upset because GM can’t build enough cars to cover demand, and suppliers are stressing out because of GM’s increased production. The unofficial word is that a new GM plant will be opening soon to cater for just this.
In addition to this, President Barack Obama declared that the US car industry is not just rebounding from recent problems, but on it’s way to being No.1 in the world again – a bold statement!
Further reports from the President said that the big three auto manufacturers, Ford, Chrysler and GM (all of which have huge operations in Detroit and surrounding cities,) were all operating at profit again.
A new deal between the government and Ford to lend them a $250 million bank loan to help export cars overseas, is expected to be repaid within 1 year including interest and charges.
The motor industry plays such a huge role in Detroit and it’s neighboring
towns. With this bright outlook and the government’s commitment, we can see why Detroit is one of the strongest recoveries economies in the US.
Perhaps we’re all gonna be seeing the words “made in America” inprinted behind our rear view mirrors before long!