Tracy Samilton

General Motors posted a record profit of $7.6 billion in 2011, although its losses in Europe were very high -- $700 million.

In a conference call with analysts, GM CEO Dan Akerson  called Europe a "rather challenging market, not only for GM and Opel, but also for our competition."

GM also lost $100 million in South America.

Most of the money GM made came from sales in North America.  GM made $7.2 billion before taxes in the region.

GM plans to make major structural changes in Europe to reduce its persistent losses there.  

The company also announced it will freeze its existing "defined benefit" pension plan for U.S. salaried workers, who instead will receive contributions to a 401(k) plan.

I think it’s no secret that reporters get unsolicited gifts in the mail or at posh press events from time to time.

That’s especially true for reporters on the auto beat. 

A bunch of auto beat reporters a couple years ago (not me) got I-Pads in the mail.   I’m pretty sure they were returned due to their various employers’ ethics policies.   No one has owned up to keeping one!

Not all the gifts are that obvious in their attempt to curry favor.

And some are flat-out hilarious.

This is a gift I got courtesy of Febreze as part of an advertising gimmick for their new car deodorizing “vent clips.” 

I gather you attach the clips to your heating vent and it provides an entire 30 days of fragrance-filled breathing delight in your car.

Detroit Mayor Dave Bing announced a tentative deal has been reached with police unions, as the city tries to head off a threatened state takeover.  

The size of Detroit’s deficit is in dispute, but the city could run out of cash by April. 

A state review team is investigating whether Detroit needs an emergency manager.  That person could set aside union contracts under current state law.  

Bing says the city can fix its own financial problems.  Last week most non-uniformed city unions agreed to take cuts. 

No details are available yet about the tentative deal with police.  Rank and file officers would still have to ratify the cuts; the firefighters union has yet to agree to concessions.    

Michigan Governor Rick Snyder has proposed a $48.2 billion budget for the fiscal year that starts in October. The proposed budget has modest increases for cities, K-12 and higher education, and roads. State police would get a larger increase. There are no major tax reforms in the budget.

General Motors reported U.S. car sales in January were down 6% from the same month a year ago.

But GM's head of U.S. Sales, Don Johnson, says comparing the two months is tough.  That's because the Detroit automaker boosted sales significantly last January with incentives. 

Johnson says the good news is GM increased its market share in the U.S. last month, compared to December.  GM had about a 19% market share last month.

Johnson says it's not possible to predict gasoline prices, but for most of 2012, he thinks they'll stay under $4.00 a gallon.

In 2008, when gas prices spiked suddenly, exceeding an average of $4.00 a gallon, consumers flocked to dealerships to buy small, fuel-efficient cars.

Chrysler is on the mend.  

The Detroit automaker made money last year for the first time since 2005.

The profit -- $183 million -- was modest.  But it would have been much larger, were it not for the company's decision to pay off its federal loans years early.  The payoff resulted in a $500 million charge.

Chrysler also reported strong sales for January of this year, up 44 percent from the same month last year, driven largely by demand for the company’s passenger cars.  

The company expects 2012 to be up to eight times more profitable than 2011.

Full-year results for Chrysler’s partner Fiat were not as good.  

Car sales in Europe are dismal as the economy of the region struggles with a sovereign debt crisis. 

January was another good month for U.S. car sales. 

Analysts think most car companies will report they sold more cars in January than they did in the same month last year.

Part of the reason is pent-up demand.  Many people held onto their old cars during the recession, and month by month, those aging cars are giving out.  People are also feeling a bit more confident in the economy.

Also, it appears Toyota has for the most part gotten back to full production, after last year's tsunami in Japan.

But there's another factor at play, according to Jesse Toprak of TrueCars.com.

That's great product.

From White House pool reports:

President Obama walked into the showroom of the 70th annual Washington Auto Show Tuesday afternoon, where he inspected about 15 new electric and hybrid models from Ford, Dodge, and General Motors.

The president was individually shown the vehicles by Sharif Marakby, director of electrification programs and engineering for Ford Motor Co; Reid Bigland, Dodge president and CEO; and Ed Welburn, vice president of global design for General Motors.

The President walked down the line of cars as each company representative explained their fuel efficiency, manufacturing process and design details. The president got inside many of the cars, sitting behind the wheel as he inspected their interiors.

Ford Motor Company posted its third consecutive annual profit last year.   

It’s another sign that the company’s massive restructuring effort, which began in 2006, has returned the company to financial health. 

"This was our plan," said Ford CEO Alan Mulally.  "This is our vision of growing a great company for the good of all of us." 

Ford made an $8.8 billion pre-tax operating profit last year, not including a one-time tax gain.  That compares to an $8.3 billion pre-tax operating profit in 2010.

The 2011 profit was largely driven by strong performance in North America.  Ford encountered speed bumps elsewhere, in Europe with the sovereign debt crisis, in Latin America, with increased competition, and in Asia Pacific, with flooding in Thailand.  

General Motors North American President Mark Reuss weighed in on his boss's testimony Wednesday before a Congressional subcommittee. 

The hearing was entitled, "Volt vehicle fire: What did NHTSA know, and when did they know it?"

Reuss says, "It was a huge opportunity for us, yesterday, and the whole company is proud of Dan [Akerson - GM's CEO].  But more importantly it gives the whole country a look into what this company can be."

Reuss says GM is a transparent company dedicated to making safe, highly fuel-efficient products and the hearing was a chance to emphasize that.