Government Motors (GM)Is On Its Way To Be General Motors Again

It is said that Americans are their best when their backs are against the proverbial wall and no more is so than those who work in the manufacturing of cars. The once great General Motors (GM) was run into the ground until it was bailed out by the government and those who had jobs in this once envied vocation seem to lose hope. But like the phoenix rising from the ashes, GM is back with a vengeance.

The New York Times is reporting that GM earned a whopping 1.3 billion in the second quarter due to its sustained rebuilding program. This is the same GM that famously sought refuge under bankruptcy laws, and receiving from Uncle Sam some $50 billion in its bailout and now is swimming in a relatively river of cash it hasn’t seen since 2004.

The stellar second-quarter profit was driven by strong results in GM’s so called core North American business – this unit had lost money for several years leading up to its bankruptcy filing. GM adds cash reserves to its coffers; cash flow this second quarter totaled $2.8 billion and GM is now in the enviable position of having $32.billion in cash and marketable securities.

All this good financial news is prompting GM insides to speak specifically on when GM will offering its IPO. Yet, with all that good news, GM's CEO Whitacre is stepping down to be replaced by Dan Akerson as of September 1st. No explanation was given for Whitacre's departure.

GM has made good on its obligations by paying back $6.7 billion in Treasury Department loans in April. GM is also promising to repay the Feds for its bailout depending on how its IPO fares. The joke is the powers that be are tired of being known as Government Motors and are eager to be independent. The News for America’s car manufacturers are on a roll – Ford recently reported gains during the quarter and Chrysler loses were less than projected.