17 Feb 2012

Record profit reported by GM

8:34 am on 17 February 2012

General Motors has reported a record full year profit after facing collapse two years ago.

The giant US carmaker made $US7.6 billion last year, 62% more than in 2010, due to aggressive cost cutting, a management shakeup and a $US50 billion bailout from the federal government.

Sales rose almost 7.6% to more than 9 million vehicles.

However, it lost $7US00 million in Europe and made a $US100 million loss in South America.

Much of its growth came from North America, where profits more than tripled to $US7.19 billion in 2011.

GM filed for Chapter 11 bankruptcy protection in 2008 and US government now owns 32% of the company.

Chief financial officer Dan Ammann of New Zealand says a steady improvement is underway.

''Behind the scenes, we are working hard to eliminate complexity and cost throughout the organisation to increase margins in all of our regions and return Europe and South America to profitability.''