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After Giving European Operations A Wide Berth, General Motors Posts Profit of $1.71 Billion
Posted on October 31, 2018 by RoadRunner

General Motors made a profit of about $1.66 billion in the second quarter of the year in spite of the dipping sales as well as a rise in vehicle discounts in the U.S. industry.
The giant automaker’s profit dropped by 42.1% from the $2.87 billion profit that it made during the same period in 2016. A big chunk of the dip in profits was due to the loss of $770 million in the company’s European division sales besides a total of $600 million in special charges connected to their decision to put on hold their vehicle sales in India and setting up their operations in South Africa. A drop in profits means fewer sales and hence fewer auto shipments.

However, the giant American Automaker performed beyond the Wall Street expectations in terms of profit. Excluding its European operations, the company made a profit of $2.4  billion, which is about 11.3% lower than what it made during the same period last year.

General Motors has indicated that its global revenue totaled up to $37 billion, which is 1.1% lower than what the company made in the same period last year. The results are based on intensifying home and other global markets’ sales while recording the company’s European division as a suspended operation. The more the sales for GM countrywide the more auto shipping contracts expected in the local market.