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General Motors returned to profitability in the first quarter of 2010, according to results announced yesterday.

The group made earnings before interest and tax (EBIT) of $1.7 billion after adjusting for the sale of the Saab operations in Sweden. North American operations made $1.2 billion EBIT, but Europe was still in loss at $0.5 billion.

In the fourth quarter of 2009, GM had made a loss of $3.5 billion on EBIT.

Cashflow from operating activities in the first quarter was $1.7 billion and GM said it ended the quarter with $35.7 billion in cash and marketable securities.

Chris Liddell, chief financial officer, said: "We're pleased with our first quarter performance, in particular achieving profitability. In North America we are adding production to keep up with strong demand for new products in our four brands."

© PE Publishing Ltd, 2010