General Motors stock surged after the automaker said, earnings more than doubled, thanks to U.S. truck demand. Bobbi Rebell reports.
General Motors quarterly earnings more than doubled, driven by strong demand in North America for its trucks and continued strength in China. The automaker also confirmed the company's profit forecast for the year, saying it would improve from last year. And even though price competition is heating up in China, the company says, GM will maintain strong profitability in that key market. GM stock rose on the results, which were much better than forecasts. The overall strength in the auto market is also helping GM, says Edmunds.com's Jessica Caldwell: SOUNDBITE: JESSICA CALDWELL, SENIOR ANALYST, EDMUNDS.COM (ENGLISH) SAYING: "You have so many people buying cars, so there are so many opportunities selling cars. I mean, we haven't seen a sales rate this high in over a decade, so we are looking at a big market, which is certainly helping the automakers and General Motors." Caldwell says, consumers have not been scared away by GM's recent string of recalls. But it is still being hit with charges related to settlements. GM's North American results were hit by a $75 million charge for a compensation fund for victims in its recall of millions of vehicles with defective ignition switches. Rival Ford reports its earnings next week.