General Motors Corporation exceeded forecasts and reported a second quarter profit of 891 million dollars, double than analysts predicted.

The key of success for Detroit-based GM is represented by sales on the European market and a spending cut in North America, where health-care and fabrication costs were clipped.

US’ largest auto manufacturer revealed earnings of 891 million dollars, or 1.56 dollars a share, which is a staggering performance compared to net losses of 3.4 billion dollars (5.98 per share) during the same period last year.

Sales dropped with 13 per cent during this year’s second quarter to 46.8 billion dollars after GM sold its majority stake in GMAC Financial Services to a consortium led by Cerberus Capital Management.

The revenue from North America fell 7 per cent from 30.9 billion dollars, while sales on Latin America, Africa and the Middle East markets rose by nearly 20 per cent. Growths were also reported in Asia with 8.2 per cent and in Europe, 4.7 per cent.

The car maker reported a sale of 2.41 million vehicles, a huge contribution being brought by the European sales where profits of 217 million dollars were achieved, the biggest since 1996.

General Motors is going through a restructuring process, 21,000 employees being laid off in North America and 4,000 in Europe. The company is considering further cost-cutting in the healthcare sector, negotiating with the United Auto Workers union the measure.