General Motors' second-quarter net income jumped 52 percent to $2.6 billion, even after spending $792 million related to the 2021 Chevrolet Bolt recall.
GM also said it's ramping up cost-cutting efforts and now expects to cut $3 billion in fixed costs over the next two years, compared to a $2 billion cut.
Adjusted earnings in the second quarter before interest and taxes rose 38 percent to $3.2 billion. Global revenue jumped 25% to $44.7 billion.
“We're gaining momentum thanks to the incredible customer response to our new pickups and SUVs, and the solid execution of our business plan by the GM team, our dealers and our suppliers,” — GM CEO Mary Barra said in a letter to shareholders.
GM said the $792 million expense it incurred for the quarter was related to “new commercial agreements” it entered into with LG Electronics to recall all Chevrolet Bolts in 2021 due to fire risk. The automaker previously said LG would pay around $1.9 billion for the recall.
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