Detroit-based automaker General Motors Co. (GM) was formed in July 2009 to acquire most of the assets and certain liabilities of the former General Motors Corp. out of bankruptcy. As a result, new GM has a much lower debt burden than the old General Motors Corp. had and is profitable in North America. In the second quarter of 2010, GM reported EBIT of $2.0 billion, an EBIT margin of 6.1%, and cash from operating activities of $3.8 billion. We believe GM's global automotive operations will generate at least mid-single-digit pretax margins and positive operating cash flow in 2010, and there is potential for improvement in 2011 because of a gradual recovery in North America. We are assigning GM a corporate
