GM profits up on US truck demand

US car giant General Motors has reported second quarter profits that have more than trebled to $1.1bn (£720m), driven by North American Chevrolet sales and continued strength in China.

Net income rose to $1.117bn from $278m a year ago, when the firm took a big charge relating to recall costs.

Its shares rose more than 7% in early trading on the New York Stock Exchange.

GM’s North American operations generated earnings of $2.78bn.

“The first two quarters of the year were strong as we fully capitalised on a robust North American industry and maintained our strength in China, despite the challenging conditions in that market,” said GM chief executive Mary Barra.

In the US, GM sold 576,000 Chevrolet cars, trucks and crossovers in the quarter. In Europe, 303,000 Vauxhall/Opel models were sold, while in Asia Pacific, the Middle East and Africa, Wuling models were the most popular, selling 370,000.

GM said its joint venture operations in China improved profit margins to 10.2% from 10% a year ago, despite sluggish demand.

The carmaker also said its North American results were hit by a $75m charge for a compensation fund for those affected by a recall of millions of vehicles with defective ignition switches, bringing the cost of the compensation fund to $625m.

BBC