GM prof­its dou­ble on strong sales

The Myanmar Times - - International Business -

STRONG US and China sales and a drop in costs for the faulty ig­ni­tions re­call helped Gen­eral Mo­tors dou­ble prof­its in the third quar­ter, the Detroit au­tomaker re­ported.

Sales in the two key mar­kets helped off­set on­go­ing slumps in Europe, South America and else­where, with unit sales up 3.8 per­cent from a year ago to 2.42 mil­lion cars and trucks in the quar­ter, helped by a 17.3pc jump in China.

The com­pany how­ever warned that its hopes for a re­turn to sta­bil­ity in Europe were at risk due to fall­out from Bri­tain’s vote to pull out of the Euro­pean Union, in­clud­ing the weak pound.

“Break­ing even in Europe this year is go­ing to be very, very chal­leng­ing,” said GM chief fi­nan­cial of­fi­cer Chuck Stevens. Net prof­its jumped to a bet­terthan-ex­pected US$2.77 bil­lion from $1.36 bil­lion a year ago.

The key dif­fer­ence was a net $1.6 bil­lion de­cline in costs for the re­call of mil­lions of cars for faulty ig­ni­tion switches and deal­ing with lit­i­ga­tion for in­juries. –

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