GM's Lutz: The Worst is Over (GM)

This could be filed under "What Do You Expect Him To Say?" but I still think Bob Lutz' statements during yesterday's New York Auto Show are worth reading. David Welch, BusinessWeek's Detroit bureau chief, offers up a sound report on Lutz saying that new models and cost cutting will return General Motors (NYSE: GM) to profitability.

This bit caught my eye:

Amid a throng of journalists, Lutz proclaimed: "GM has the worst behind it. Soon all will be revealed," he said, adding that, "I can't mention figures, because I'd get in big trouble."

I'm resisting the urge to get excited -- in the short term. Why? Because GM will almost surely announce further losses before things get better. Still, Lutz' optimism should count for something for those of us holding GM common stock. It's also worth noting that GM's new fleet of SUVs have reportedly been selling well since being launched in January. (So much for the conventional wisdom that people would stop buying them with higher gas prices.)

Oh, I'm sure some bears on the stock suspect the 74-year-old Vice Chairman must be getting senile. Let's see where we wind up further down the road.