General Motors has blown the doors off analysts’ earnings expectations by announcing a 22 per cent rise in profits on the back of improved truck sales in the United States.

However, the American car maker has failed to stem losses in Europe, where it was knocked off course by its Russian business.

Losses before tax in Europe widened to $393 million in the fourth quarter, from $365 million a year earlier. Full-year pre-tax losses in the region went from $899 million in 2013 to $1.37 billion. While fourth-quarter sales in most of Europe were flat, in Russia they fell by more than a quarter.

Chuck Stevens, the company’s chief financial officer, said that the weaker rouble had made new vehicles more expensive for Russians. Last week, GM said that it would suspend production at its St Petersburg assembly plant for two months from mid-March and would raise its prices because of the weak currency.

Despite its problems in Russia, Mr Stevens told analysts that “the European business demonstrated improved core operating performance in the fourth quarter on a year-over-year basis”.

GM has pledged to return its European operations to pre-tax profit by next year and is withdrawing its Chevrolet brand across the Continent to concentrate on Opel and Vauxhall. Mary Barra,GM’s chief executive, said that the group’s focus on its Vauxhall and Opel brands in western Europe had dramatically improved prospects in the region.

GM’s net income reached $1.1 billion in the fourth quarter, up from $900 million a year earlier, partly driven by increased sales of full-sized SUVs and pick-up trucks, which have a wider profit margin than smaller cars. Revenue in the three months was $39.6 billion, against $40.5 billion a year earlier.

Full-year net income fell from $3.8 billion to $2.8 billion as costs associated with the recall of a record 30.4 million cars and trucks over faulty ignition switches came to $4.1 billion.

GM plans to raise its dividend by 20 per cent to 36 cents. It will pay record annual bonuses of up to $9,000 to its United States-based United Auto Workers union employees, up from $7,500 a year ago.

Shares in GM were $1.96 up at $35.96 in afternoon trading yesterday.