And your 5% margin is a little light.
GM had a 13.9% gross margin in the last quarter.
I appreciate there is a lot of accounting gymnastics involved in an EPS, but 14% isn’t 5%.
GM is still getting a lot of passes on things they should be having to pay and do from the government. Like things they should have had to recall and pay for (Impala suspension failures come to mind) but they get to walk away from because of the ‘bankruptcy’.
Also, you may want to go look at their non-GAAP accounting again. Even with their non-GAAP fudging, most of those margins are coming from their *finance* arm, not from production vs. sales. That’s actually where most car companies get the majority of their profits from. Direct profits on a car, leaving out financing, are often in the 3-7% range.