General Motors earnings are up by 157%. They made $2.87 billion in the second quarter of this year.
This is up from $1.1 billion last year.
“General Motors continues to be on a roll,” said Detroit News business columnist Daniel Howes.
Howes said CEO Mary Barra is now trying to convince the investment community General Motors is an “earning machine.”
However, earlier this month a federal appeals court in Manhattan ruled that the General Motors bankruptcy does not protect it from lawsuits over the ignition-switch defect. Lawyers during that hearing were talking about $10 billion in claims.
“There are clearly offsets,” Howes said.
Howes says that, as we have seen with Volkswagen, the contemporary American legal system is going to hold manufacturers accountable.
“[General Motors is] going to have to continue to work their way through this,” he said.
To hear our full conversation with Howes, including his thoughts on the presidential election, listen below.
Daniel Howes is business columnist and associate business editor of The Detroit News.