GM Posts Profit

INTERVIEW: WWJ AutoBeat Reporter Jeff Gilbert talks one on one with GM CFO Chris Liddell.

DETROIT (WWJ) - General Motors announced Thursday morning it earned $4.7 billion dollars in 2010.  It's the company's first full year profit since 2004.

"First and foremost, we're just producing better vechicles," said GM Chief Financial Officer Chris Liddell.   "We're producing vehicles people want to buy, and that's evidenced in the marketplace.  But, clearly, we've cut our cost structure."

General Motors is earning about 7 per cent more on each vehicle it sells, according to the automotive web site truecar.com.  Liddell says GM has cut its costs to the point where it can make money even in a tougher sales enviornment.

The fourth quarter was the weakest one of the year.  Liddell says the $500 million dollar quarterly profit was impacted by higher costs, which GM anticipated.

"We consciously spend more money on marketing, spent more money on engineering, some of the launches in the fourth quarter," he told WWJ AutoBeat Reporter Jeff Gilbert.

GM says the average profit sharing payout will be $4,300 per employee for manufacturing workers.

"Last year was one of foundation building," said GM CEO Dan Akerson, in a statement from the company. "Particularly pleasing was that we demonstrated GM's ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters."

General Motors operating cash flow was down in the fourth quarter, because of the company's four billion dollar cash contribution to its pension plans. 

General Motors has been moving to get new products on the road, and spur on a car sales market that has been growing, but slowly.  The company is expecting more growth in 2011.

"Our focus for 2011 is to build on our progress and continue to generate momentum in the marketplace,"  Liddell said in a statement.  "We expect our first quarter will be a strong start."

Liddell not concerned about higher gasoline prices, saying General Motors has anticipated that, and has planned for it with the addition of smaller cars and electric vehicles like the Chevrolet Volt.

"I think the important thing to think about in oil prices is the long term trend," he said.  "It's an issue.  It's been an issue for a while.  It's just more obvious in times like this."

Follow Jeff Gilbert on Twitter @jefferygilbert.