Shares of General Motors surged Wednesday after the company announced big job cuts in Europe and reported third-quarter earnings that were far better than Wall Street expected.
The Detroit company said it has cut 2,300 jobs in Europe this year and wants to trim 300 more, part of a larger plan to reduce costs and raise revenue in the struggling region with new vehicles that are more appealing to buyers.
Despite the moves, General Motors Co.’s net profit fell 14 percent as European losses widened and North American earnings dropped due to falling pension income and higher warranty costs.
But investors looked past the decline because GM’s earnings far exceeded expectations.
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