GM Cashes In

GM has reported its first quarterly profit since 2007:

Ten months after emerging from a government-orchestrated bankruptcy, General Motors Co. on Monday reported its first quarterly profit in three years, driven by dramatic cost reductions and improved global sales.

GM made $863 million in the first three months of 2010, compared with a $6 billion loss a year earlier, a performance that surprised analysts who expected more modest results. Revenue grew 40% to $31.5 billion, and the company generated $1 billion in cash.

From Finance Chief Liddell:

"My mantra is to focus on the day job and the [initial public offering] will be successful," he said in an interview. That could happen anytime from a few months until next year, he said. "This is an industry where a lot of variables can change. There is no reward in my field for being overly optimistic."

This is not big news, it is HUGE news. We've seen a shift from GM from producing as many cars as possible to making quality cars that people want to buy. This has had a positive effect on revenues. There is still a lot of work to be done, but it's great to see GM move in a positive direction.