GM drives into $1.3 bn Q2 profit on higher sales

In strong signs of business turnaround, General Motors Company reported on Thursday a second- quarter profit of $1.3 billion, primarily driven by higher sales of vehicles worldwide.

The once-beleaguered auto maker, bailed out by the US government last year, had lost a whopping $13 billion in the 2009 June quarter.

GM's profit of $1.3 billion in the three months ended June 2010 came on revenues of $33.2 billion, it said on Thursday.

Global sales, including Chevrolet, Cadillac and Buick, touched 2,153,000 vehicles in the second quarter.

The same was at 1,938,000 vehicles in the year-ago period. GM has good presence in India and its sales in the country rose 45 per cent to 7,124 units in July as compared to the year-ago period.

The US government holds little over 60 per cent in the parent company, which had received billions of dollars worth American taxpayers' money last year.

"We have delivered strong product, maintained cost discipline, progressed strategic initiatives. . ., and delivered two consecutive quarters of profitability and positive cash flow," GM's vice chairman and chief financial officer Chris Liddell said.

At the end of second quarter, the car maker had $32.5 billion in cash and marketable securities.

Last year, GM India was converted into an equal joint venture between General Motors and Shanghai Automotive Industry Corporation.