It has been announced that the General Motors Company has a certain sales decrease outside the US. The level of sales in South America has dropped significantly. Europe's hopes to reach breakeven this year are threatened by the aftershocks of the U.K.'s Brexit vote. Despite this, the level of domestic sales is not low.
North American operations' pretax profit jumped 31 percent in the second quarter to $3.65 billion from the year-earlier period, despite a drop of 5.7 percent in overall North American unit sales. North America-heavy General Motors Financial joined the party, topping all overseas operations with a pretax profit of $266 million, up 18 percent.
The General Motor's net income more than doubled to $2.87 billion, as revenue rose 11 percent to $42.37 billion. This is a record for any quarter since GM's emergence from bankruptcy in July 2009. GM's robust North American profits reflected its strategy of focusing on retail sales, where high-margin SUVs and pickups are flying off dealers' lots, and backing off from less-profitable fleet sales, where the industry traditionally dumps slow-selling sedans. That strategy boosted its profit margins in the quarter to 12.1 percent from 10.5 percent a year ago.
