Car maker expects to bounce back after bankruptcy protection

Ailing US car giant General Motors expects to return to profitability in 2011, court papers show.

Poor sales forced the company to file for bankruptcy protection this week with 20,000 US workers expected to lose their jobs.

But the company’s financial adviser, Evercore Partners, believes that GM will lose $17.5bn (£10.9bn) this year before making a profit of $3bn in 2011.

The forecast is based on the assumption that US car sales will rebound to 16 million vehicles a year from the current annual rate of less than 10 million.

Evercore also expects GM global production to increase from 3.8 million vehicles this year to six million by 2014.

Meanwhile GM is said to be close to a deal to sell the Saturn brand to Roger Penske, a former racing driver who owns the second largest car dealership network in the country.

GM said earlier this week it had 16 parties interested in Saturn.

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