The chief executive officer of GM, the biggest car company in the US, made public his plans to quit the post.
Edward Whitacre, CEO of GM, is going to leave the office in September.
“I will pass it on to current board member Dan Akerson, but probably will stay on as a chairman until the end of the year.” – says Whitacre.
Earlier, General Motors reported their second-quarter profits of $1.6bn, the biggest profit of the company in six years.
This marked their second consecutive quarter of strong profits, following the companies big loses in 2009, when it was struggling with bankruptcy and had to seek for government support.
After the restructure the company continues to show progress in the turnaround of the company and is giving a lot of investors hope.
GM cut more than 65,000 jobs in the United States and closed factories trying to cut costs last year, with many of those jobs going overseas.
While General Motors losses for the second half of 2009 totaled nearly $4.3bn, the companies have made a profit of $2.8bn so far this year, so this is encouraging news.
Announcing his resignation, GM chief executive said he had achieved what he sat out to do when joining GM in July last year, including restoring GM’s profitability and strong market position.
Edward Whitacre will leave the company at the time where it is still 61% owned by the US and Canadian government.
GM believes to be currently planning an initial public offering which will see shares sold back to private investors, minimizing its reliance on government aid.
It could be worth up to $16bn, making it the second-biggest IPO in the history of the US, but details are still unclear.
Government loans worth $8.4bn have already paid back from GM.