The automaker's revenue shot up to a record, driven by strong sales in the U.S. and China. But as Fred Katayama reports, one analyst says those results are unsustainable.
General Motors revving up its profit engine contrary to fears of a market slowdown in the U.S. Quarterly income more than doubled. Revenue shot up to a record, driven by strong sales of full-sized trucks in the U.S. - and Cadillacs, Buicks and low-end Baojun cars in China. That helped make up for the $142 million loss in Europe, where GM had projected a $400 million hit in the second half from Britain's vote to exit the European Union. It says it'll be "very challenging" to meet its forecast of breaking even in Europe this year. While the volume-driven North American results were better than expected, Susquehanna Financial analyst Matthew Stover said, "That's probably unsustainable. GM's inventory is at 90 days versus the industry's 65 days. How do you moderate inventory in a way that you don't impair your profitability?" GM predicts it'll deliver full-year earnings on the high end of its previously forecast range, saying it's on track for record profit in 2016. Its shares fell at the market open.