General Motors Co is on track to hit the financial restructuring targets set in its U.S. government-sponsored bankruptcy, but still faces risks as it tries to win back consumers in an uncertain U.S. economy, the automaker said on Wednesday.
GM also said it expected to close deals to sell its Saab and Hummer brands by the end of 2009.
The automaker repeated that it was preparing for an initial public offering of its stock next year.
Chief Executive Officer Fritz Henderson, who presented the update on what the new GM has achieved in its first 90 days out of Chapter 11, said the top-selling U.S. automaker was on target to cut costs and debt by a deep enough margin to make it competitive with rivals.
GM expects to present third-quarter financial results in mid-November, Henderson said, adding that details to be announced then would show the progress on reducing overhead costs and leverage.
We're well on our way to achieve those, if not achieving them, Henderson told reporters and analysts on a conference call. The most important thing we have to focus on now is how do we win in the marketplace.
GM said in a statement that despite the progress it had made since emerging from bankruptcy with $50 billion in U.S. government financing, it still faced risks.
Those include uncertainty surrounding the strength of the U.S. economy and the level of unemployment.
GM, which launched a major advertising initiative last month, said reaction to its new vehicles had been positive, but added that it would have to continue to win back American car shoppers to be successful.
(Reporting by Kevin Krolicki; Editing by Lisa Von Ahn)