GM triples its profits

 
Steve Dinneen
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General Motors (GM) added further weight to the automotive industry bounce-back after more than tripling its quarterly profits.

However, the stronger-than-expected results, driven by a recovery in the US market and strong sales in Asia, were not enough to please bearish investors, who picked up on its vehicle prices being weaker than rival Ford, with GM stock falling three per cent.

The firm’s total sales rose 15 per cent to $36.2bn (£22bn) against analyst expectations of $35.6bn.

GM’s results follow those of rival Ford, which last week posted its best first-quarter profit in 13 years as higher prices for redesigned vehicles offset pressure from spiking commodity and oil prices.

It was the first full quarter since GM’s Initial Public Offering (IPO) last November. The company filed for bankruptcy in 2009.