General Motors has announced its second quarter earnings of $1.3 billion. There had been much anticipation surrounding this report, as many were speculating that GM, which came out of Chapter 11 bankruptcy last year. This means that they earned more than $2 billion dollars in the first six months of this year. This is a major turnaround for the company, even though they have a long way to go to make up for the losses that forced them into bankruptcy.
We talk with Nick Bunkley, who writes about the auto industry for The New York Times. Bunkley says GM has seen a significant increase in its profits this quarter because its sales are up and its expenses have been cut for the last few years. Bunkley says, "It's a much smaller company [now], that doesn't have the financial baggage it used to have." The expectation is that GM will soon file for an IPO.