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GM Shows Money Can Be Made in the Boring, Old Car Business

  • Full-year earnings may be at high end of its forecast range
  • Automaker offers severance packages to about 18,000 employees
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"With pricing, our discipline came through this quarter," CFO Dhivya Suryadevara says. "It’s absolutely sustainable."(Source: Bloomberg)
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General Motors Co. is showing that the old-school business of carmaking can still be sexy.

The automaker’s shares surged as much as 8.8 percent on Wednesday after GM posted a surprise jump in quarterly profit and announced fresh cost cuts. The earnings belied expectations for the sector that were awfully low -- analysts were using phrases like ugly and predicting a bloodbath.