General Motors Corp Chief Executive Officer Rick Wagoner said his recovery plan is working, even as the world's largest automaker reported the biggest loss in its 100-year history.
Rising sales in China, Russia and Latin America and money- saving labor agreements in the US will help the Detroit-based maker of Chevrolet and Cadillac cars trim automotive losses for a third straight year in 2008, Wagoner said on Tuesday.
"Certainly in total, automotive earnings should continue to improve," the 55-year-old chief executive said in a Bloomberg television interview from his Detroit headquarters after GM posted a $38.7 billion loss for the year, including $722 million in the fourth quarter. "We expect the strength in Asia and Latin America to continue."
GM lost money the past three years as Wagoner repelled a takeover attempt by billionaire Kirk Kerkorian and quashed speculation by analysts that the automaker may be forced into bankruptcy. He raised $21 billion in asset sales and cut annual costs by $9 billion to pay for new models.
Wagoner's challenges include losses in North America and a US market share that fell to 23.7 percent last year from a 51 percent peak in 1962. GM shares have lost 54 percent of their value since Wagoner took over almost eight years ago.
"In terms of this restructuring business, it takes time," said Mirko Mikelic, who helps manage $22 billion at Fifth Third Asset Management in Grand Rapids, Michigan, including GM bonds. "I have to give Rick Wagoner credit for doing that. You cannot just write a check and say I am moving production to China. I do not think anyone expects a profit this year."
Source: China Daily/Agencies
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