General Motors Gains Profit of $2.5 Billion by Rising Vehicle Prices

General Motors' second quarter was extremely profitable bringing $2.5 billion into the manufacturers treasury. The 89 percent improvement over 2010, including a long-awaited profit from GM’s troubled European unit, breezed past the $2 billion figure forecasted by Thomson One Analytics. The good news came after weeks of worrying rumors about unemployment and European countries’ debts.

“It’s a solid quarter ... profitable in every region of the world -- that’s an important first for us. There’s an increased amount of uncertainty out there. ... What we’ve done successfully is configure the business with a low break-even point and a strong balance sheet so that we can handle whatever scenario comes along," Chief Financial Officer Dan Ammann was quoted as saying by the Detroit Free Press.

Also, earnings per share of $1.54 bypass the analysts predictions of $1.20 per share. Furthermore, GM’s CEO Dan Ammann expects profits in the second half of the year to be “modestly lower” than the first two quarters. That will be mostly because the car manufacturers profits often see a seasonal drop in the second half of the year. The car manufacturer wasn’t stopped by the poor economy from booking profits.

After $82 billion in losses during the four years before its bankruptcy, GM managed to gain $4.7-billion net income last year and is in the middle of its longest inline profits since 2002. we’d also like to mention the fact that Gm global share improved to 12.2% from 11.6% a year ago. As sales reached higher figures Gm added about 6,000 employees worldwide since the end of 2010.