GM planning an IPO with which it hopes to raise $12 billion to $16 billion in cash.

GM is back on track.

The Detroit automaker has posted a net profit of $1.3 billion for the second quarter of 2010 on gross revenues of $33.2 billion, an increase of 44 percent over the $23 billion in revenue for the same period in 2009. GM also ended the second quarter with $31.5 billion in cash on hand.

After posting profits for two consecutive quarters, GM's CEO Ed Whitacre, charged with resurrecting the company after a massive bailout and subsequent bankruptcy, has stepped aside believing his work is done. He will be replaced on September 1 by Daniel Akerson.

With the company now in good health, GM is planning an IPO with which it hopes to raise some $12 billion to $16 billion in cash. GM is currently 60 percent owned by the United States federal government which wants to shed its controlling stake by taking the company public again.

GM is still losing money at its European division, posting a loss of $160 million for the second quarter. But things are improving even there. For the first quarter, GM Europe lost $506 million.

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