Severe Weather Warnings

GM Posts Record Earnings and Promises Better Times Ahead

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.
DETROIT, MI - SEPTEMBER 17:  The General Motors logo on the world headquarters building is shown September 17, 2015 in Detroit, Michigan. Mary Barra, Chief Executive Officer of General Motors, and Mark Reuss, President of GM North America, held an Employee Town Hall Meeting and a question & answer session with  the news media today to discuss GM's $900 million settlement with the Justice Department over GM's ignition switch recalls. (Photo by Bill Pugliano/Getty Images)

DETROIT, MI – SEPTEMBER 17: The General Motors logo on the world headquarters building is shown September 17, 2015 in Detroit, Michigan. Mary Barra, Chief Executive Officer of General Motors, and Mark Reuss, President of GM North America, held an Employee Town Hall Meeting and a question & answer session with the news media today to discuss GM’s $900 million settlement with the Justice Department over GM’s ignition switch recalls. (Photo by Bill Pugliano/Getty Images)

NEW YORK  — The good times are rolling at General Motors, as the once troubled automaker reported record profits Thursday.

GM, the nation’s largest automaker, reported $2.9 billion in profit in the second quarter. That was more than double what it made a year ago. Strong sales in both the United States and China lifted sales and earnings.

And the company said it expects good times to continue, even as some analysts have worried that U.S. car sales may have topped out in recent months, industry-wide. GM gave a rosier outlook for 2016 following its quarterly results.

Shares of GM jumped more than 5% in premarket trading on the news. Shares had been down 7% so far this year through Wednesday’s close, on worries about conditions in the industry.

But even if U.S. sales start to fall at GM, it is far better positioned than it was last decade, when uncompetitive labor contracts and excess factories resulted in deep losses and a bankruptcy. GM can be profitable even if sales dip dramatically from the current record levels.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.