Vauxhall’s owner on the right track

VAUXHALL’S parent company General Motors has continued its turnaround with a second consecutive quarter of profits.

The automotive giant, which nearly sold Vauxhall last year, made a net profit of $1.6bn (£1bn) for the three months to the end of June – its best quarterly profit in six years.

GM emerged from bankruptcy protection last year and is now looking at a plan to list its shares through an IPO in the States. In a surprise announcement after the results chief executive Ed Whitacre, 68,  said he would be standing down on September 1. He will be replaced by Dan Akerson.

While GM’s losses for the second half of 2009 totalled $4.3bn, the company has made a profit of $2.8bn so far this year.

Vice chairman and chief financial officer Chris Liddell said: “I am pleased with our progress.We have delivered strong product, maintained cost discipline… and delivered two consecutive quarters of profitability and positive cash flow.”

Car sales for the quarter brought in a total of $33.1bn, with the company making a total of 2.3 million cars worldwide. In the same quarter last year, when GM was trading under bankruptcy protection, the company made just 1.5 million cars.

GM’s IPO, details of which are expected later this month is aimed at reducing the shareholding of the US and Canadian governments – who own 61% of the company.

Vauxhall’s Ellesmere Port plant in Cheshire is one of General Motors’ most productive. It is the home of the new Astra model, which is has been a big commercial success and last month was the UK’s best selling car.

The factory, which employs around 2,400 people  is hoping to be chosen to make the new electric powered Ampera car.