US car giant GM has reported a second consecutive quarter of profits following its massive losses and emergence from bankruptcy protection in 2009. While GM’s losses for the second half of 2009 totalled $4.3bn, the company has made a profit of $2.8bn so far in 2010.
General Motors said it made a net profit of $1.6bn (£1bn) for the three months to the end of June – it’s largest quarterly profit in six years and said the results showed “sustained progress” in the turnaround of the company.
In the last 2 years GM has cut more than 65,000 jobs in the US and closed factories in an attempt to cut costs and has also sold several car brands, including Saab and Hummer, though it has retained its European brands, Opel and Vauxhall.
“I am pleased with our progress,” said Chris Liddell, GM’s vice chairman and chief financial officer.
“We have delivered strong product, maintained cost discipline… and delivered two consecutive quarters of profitability and positive cash flow.”
Car sales for the quarter brought in a total of $33.1bn, with the company making a total of 2.3 million cars worldwide.
In the same three month period last year, when GM was trading under bankruptcy protection, the company made just 1.5 million cars.
The bankruptcy and rescue deal agreed last year means GM is still 61% government-owned, with both the US and Canadian governments holding stakes.