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GM CFO: Inventory Higher than Desired

GM CFO: Inventory Higher than Desired

During a recent conference call with analysts, General Motors CFO Dan Ammann said that the automaker ended the quarter with more inventory that it would have liked, but noted that progress was being made in terms of

During a recent conference call with analysts, General Motors CFO Dan Ammann said that the automaker ended the quarter with more inventory that it would have liked, but noted that progress was being made in terms of lowering costs.

According to The Associated Press, General Motors reported a first-quarter profit of $1 billion, but the results were limited somewhat by losses in Europe. Executives with the company have reportedly promised to fix operations in Europe, including its Opel and Vauxhall brands, but no specific measures have yet been announced.

The automaker ended last month with 701,389 cars and trucks in dealers, which would be enough of a supply for 79 days based on current sales rates, according to the news source. Though inventory was down 1.6 percent from the end of March, Ammann said it was still high for the overall quarter.

"We ended the first quarter with more inventory than we'd like to have, and we will be working that down over the balance of the year," the CFO told analysts. "But our objective is to work a good chunk of that down through the second quarter. And as it relates to some cost actions and so on, we're working, we're making progress."

The Detroit Free Press reports the $1 billion profit for the first quarter exceeded the expectations of analysts. 

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