GM profits double on strong sales
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. –