GM posts first profit since emerging from bankruptcy last year. GM has seen a substantial sales rise as the North American car market rebounds.

First it was Ford, now it's GM that is finally back in the black.

GM turned its first quarterly profit since emerging from bankruptcy last June - with a net balance of $865 million (€705 million) for the period January to March 2010 attributable to stockholders.

The new GM is also in a much healthier financial state with $35.7 billion (€29 billion) in cash and other easily convertible securities on hand and revenues of $31.5 billion (€26 billion) for the quarter.

The Detroit-based automaker is growing its sales in North America as the automotive market there is rebounding after the economic crisis that crippled car sales in late 2008 and much of 2009. GM North America profits were $1.2 billion (€973 million) for the quarter. GM International Operations also posted a $1.2 billion net gain.

"In North America we are adding production to keep up with strong demand for new products in our four brands," said GM's vice chairman and CFO Chris Liddell.

But getting to GM's stated goal - an IPO - remains a challenge. GM Europe is still losing money, reporting a $500 million (€406 million) loss for the quarter.