1. Is GM diversification strategy successful in all of its ventures?

2. Ackerson was planning to replace about half of GM’s entire model lineup by 2014, and hoped to improve the company’s financial situation enough to return its stock to an investment-grade rating. How Could GM invest to be reborn as a winner?

On January 9, 2013, Daniel Akerson, the chief executive of General Motors, pointed out that his firm had shown profits on a consistent basis over the past eight quarters (see Exhibits 1 to 3). He expected GM to show even better performance in the coming year, largely because it was expecting to launch new models of many of the cars in its lineup. At the same time, Akerson acknowledged that the firm still had a long way to go before it completed its tumaround. "Obviously we still have a lot of work to do in some areas and we're taking the necessary corrective actions to get the ball over the goal line," he recently told analysts and reporters.1 Go to library tab in Connect to access Case Fimancials. EXHIBIT 1 Income Statement C. Incorne Statement Period Ending Dec 30, 2011 Dec 30, 2012 Dec 30, 2010 135,592.000 4 Total Revenue 5 Cost of Rovenue 6 Gross Profit Selling General and Administralive Noniecuring 9 Operating income or Loss hcome fun Contiaung Operatons 152,256,000 141,881,000 10,375,000 13,593,000 27,145,000 150,276, 000 131,220,000 19,047,000 12,105, 000 1,286, 000 5,656,000 119,038.000 16.554.000 7. 11,440.000 (30,363.000) 5.108.000 10 11 Total Other Income/Expenses Net 595,000 889,000 1,727.000 12 Earnings before ntarast and Taxes 13 hterest Expense 14 heome betore Tax (29518.000) 439,000 (30 007.000) (34 831,000) 52,000 6.188.000 4, 186, 000 6,507,000 540, 000 5,967,000 (110,000 (97,000 9190,000 9,190, 000 6639.000 1.098.000 5541.000 672000 15 ncome Tar Expeise 16 Minerity Interest (321,000) 6.172000 17 Net Income from Continuing Ops 18 Net Income 0.172 000 Nate: All mnhen in thacands. EXHIBIT I Income Statement Source: finance.yahoo.com; GM.