General Motors has claimed the number one spot in the automotive industry just two years after GM filed for bankruptcy. According to media reports, the automaker has topped sales in every corner of the globe, managing to increase profits despite years of financial struggles.
General Motors Takes Spot as Number One Automaker
General Motors has suffered its share of ups and downs over the past decade, but saw the worst of its struggles in 2009 when it filed for bankruptcy. In an attempt to restructure the company, GM let go of several of its top lines, including Pontiac and Saturn, in addition to selling its subprime auto loan business.
Since that time, the company slowly moved toward recovery. It has been able to repay more than half of its TARP funds received from the government, while also allowing GM to reenter the subprime business and pushing to sell shares on the New York Stock Exchange.
Now, after selling 640,000 more cars and trucks than it did in 2010 and earning more than $7 billion in profits in three quarters last year, the company pushed back to the top of the auto industry in 2011, surpassing last year’s winner, Toyota.
General Motors Faces Steep Competition in 2012
Consumers who are interested in car financing options this year will likely see a lot of deals coming from the top automakers as they each fight for the coveted title. While General Motors is currently the best-selling company in the industry, experts say that Toyota and Ford will be tough competition.
Toyota took the spot as the top automaker in 2010, but suffered massive losses after the tsunami in Japan devastated many of the company’s plants, impacting its ability to build cars and ship parts to other automakers around the world. Now, experts say it is recovering from its losses and gearing up for a strong year.
Ford is also among the competition GM faces with sales up 11 percent in the past year. With that said, auto consumers may see a rise in incentives and deals as automakers contend for the top spot.
Only 2 years later and they’re number 1 again!? I wonder how much money was unaccounted for in the original bankruptcy, since their creditors – at the time – would have been left empty handed.