No decline for GM — it's surging anew

The American automotive industry is under fire — not only by the financial community but the media who influence the views of the consumer. Many industry watchers have been treating Detroit as if it were in a spiral of decline and can't adapt.

Don't tell that to the General Motors management team or Utah's GM dealers. As a Utah GM dealer I, for one, just don't believe it.

General Motors just performed what many in the financial community believe is a real, bona fide financial turnaround. Second-quarter earnings showed a profit of $1.2 billion before adjustments, up substantially from projected earnings and performance of second quarter 2005. As part of its turnaround plan, GM included one-time charges of $4.3 billion, including $3.7 billion for buying out 34,000 hourly union employees. Total revenue, the real key to future growth, rose 12 percent to $54.4 billion from $48.7 billion a year ago.

We've seen a lot of good news from GM in recent months.

I have built a successful career and I am a true believer in GM. I've sold GM vehicles for 31 years, 26 of those years in Utah. I know that, today, GM builds and sells more cars than any other auto manufacturer and continues to support the livelihoods of more than a million people in North America.

GM leads the auto industry in its commitment to the American economy with more than $18.1 billion in U.S. capital investment. It just made a huge environmental advancement; last week GM dedicated what is being called the "world's most environmentally friendly automotive plant" just outside of Lansing, Mich. When it reaches full production, it will employ up to 3,000 Americans and build a new generation of fuel-efficient crossover SUV products.

Yes, behind this historic and planned turnaround, GM management made some tough choices. GM bought out union employees, restructured its management staff and sold 51 percent of its financing arm, General Motors Acceptance Corp. They are important pegs in the restructuring plan that is already moving GM back as a leader in the industry.

Most important, GM has accelerated the introduction of new products here at home. It is making changes in its cars and trucks with improved quality, safety, fuel economy, technology and design. In Utah, full-size trucks and sport utilities are a necessity for many of us. GM, not Toyota or Ford, builds the most fuel-efficient, full-size trucks and SUVs available.

GM also has more than 30 models achieving over 30 mpg highway rated and is the production leader in E85 ethanol trucks — a good reason why the investing professionals value GM stock 50 percent higher than they did 10 months ago.

As a Utah GM dealer, I have built a solid business for my family and, most important, my employees. GM's commitment and goals of growth and excellence are why I have been proud to represent them all of these years. Their recent North American turnaround is another example of why I believe GM and its dealers will continue a long and profitable relationship well into the future.

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Jerry Seiner is the owner of several Utah automobile dealerships.