NEW YORK—GM, the General Motors Company, said on Thursday that its second-quarter profits widened to $1.3 billion on overall revenues of $33.2 billion, a stark contrast to last year’s $12.9 billion loss in the same quarter.
Results from GM, world’s second-biggest automaker, which is 61 percent owned by the U.S. government, underscores the recovery in the auto sales market which has been at least tepid during the first six months of 2010.
“I am pleased with our progress on achieving our business objectives,” said Chris Liddell, vice chairman and chief financial officer of the Detroit automaker, in a statement.
The company is expected to announce an initial public offering (IPO) of stock as soon as this week, which would allow Chief Executive Officer Edward Whitacre to proceed with shedding some of the government’s $50 billion investment in the company.
GM is hoping to raise $12 to $16 billion in an IPO the company has indicated earlier. The company currently has $32.5 billion in cash on hand.
The global auto industry is recovering from a sharp downturn, which forced Chrysler Group and GM into government-assisted bankruptcies last year. Chrysler has been bailed out by the U.S. government and is now partially owned by Italy’s Fiat S.p.A. Ford was the only U.S. automaker to not require a bailout.
GM was forced to shed non-core brands, as today it operates only four—GMC, Buick, Chevrolet, and Cadillac. The restructuring and refreshed model lineup has helped its sales, as its Buick division saw sales increase 60 percent last quarter, and Cadillac likewise gained 45 percent.
In the United States, GM sold 603,000 vehicles last quarter, an increase from the 541,000 sold last year in the same period.
Results from GM, world’s second-biggest automaker, which is 61 percent owned by the U.S. government, underscores the recovery in the auto sales market which has been at least tepid during the first six months of 2010.
“I am pleased with our progress on achieving our business objectives,” said Chris Liddell, vice chairman and chief financial officer of the Detroit automaker, in a statement.
The company is expected to announce an initial public offering (IPO) of stock as soon as this week, which would allow Chief Executive Officer Edward Whitacre to proceed with shedding some of the government’s $50 billion investment in the company.
GM is hoping to raise $12 to $16 billion in an IPO the company has indicated earlier. The company currently has $32.5 billion in cash on hand.
The global auto industry is recovering from a sharp downturn, which forced Chrysler Group and GM into government-assisted bankruptcies last year. Chrysler has been bailed out by the U.S. government and is now partially owned by Italy’s Fiat S.p.A. Ford was the only U.S. automaker to not require a bailout.
GM was forced to shed non-core brands, as today it operates only four—GMC, Buick, Chevrolet, and Cadillac. The restructuring and refreshed model lineup has helped its sales, as its Buick division saw sales increase 60 percent last quarter, and Cadillac likewise gained 45 percent.
In the United States, GM sold 603,000 vehicles last quarter, an increase from the 541,000 sold last year in the same period.
