GM reports record profits for 2011

Published:  17 Feb at 6 PM

As reported by the BBC, American carmaker General Motors generated record profits during 2011 but showed huge losses for its European operations. The company made a net profit of $7.6 billion (£4.85bn) during the year, a 62% jump from 2010.

However, the company lost $700 million in Europe, including its UK Vauxhall factories in Luton and Ellesmere Port, making a $100 million loss in South America. General Motors, which faced bankruptcy just two years ago, had a 7.6% sales rise in 2011 with over 9 million vehicles.

Much of this growth was generated in North America, where revenues tripled to $7.19 billion.
GM has announced its plans to give as much as $7,000 in individual bonuses to 47,500 eligible employees across the globe - compared to $4,300 just a year ago.

In 2008, the company filed for bankruptcy protection, receiving a $50 billion bailout from Obama's administration, with the American government now having ownership of 32% of the company.
In Britain, the car maker has around 4,500 staff, manufacturing the Vauxhall Astra van, hatchback and estate models.

General Motors' CFO, Dan Ammann, stated that the company was working hard to cut complexity and cost within the organisation to maximise margins in all its regions and return South America and Europe to profitability.