Friday June 5, 09:29 AM
GM hopes to return to profit by 2011: court papers
DETROIT (DETROIT.SN - news) , Michigan (AFP) - General Motors (NYSE: GM - news) expects it could return to annual profitability by 2011 after emerging from bankruptcy protection as a new, leaner company, court filings showed.
The automaker's financial adviser, Evercore Partners (NYSE: EVR - news) , estimated that GM will lose 17.5 billion dollars this year before swinging to a pre-tax profit of three billion dollars in 2011 and 7.8 billion dollars by 2014.
The forecast was based on the assumption that US auto sales would rebound to 16 million vehicles a year from the current annualized rate of less than 10 million and that GM's global production would increase from 3.8 million vehicles in 2009 to six million by 2014.
Meanwhile, GM is close to a deal to sell its Saturn brand to Roger Penske, a former race car driver who owns the second largest car dealership network in the country, people briefed on the matter said Thursday.
GM said earlier this week it had 16 parties interested in Saturn.
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