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General Motors posts record year of profits

21 February 2012 Last updated at 11:25 GMT

Two years after almost being given up for dead General Motors (GM) has made the ultimate comeback.

The US car giant has racked up its biggest ever annual profit thanks to aggressive cost cutting, a management shake-out and a government bailout.

GM made $7.6bn beating its previous record of $6.7bn.

General Motors' chief financial officer, Daniel Ammann, told the BBC 2011 had been "all about progress towards our long-term objectives".

However, there are worries over its European business.

Adam Jones from Morgan Stanley says GM has no choice but to make a "more sustainable business" in the long-term.

Caroline Hepker reports.