Thu, 13 Aug 2020

GM posts 800-mln-USD loss in 2nd quarter

Xinhua
31 Jul 2020, 02:59 GMT+10

CHICAGO, July 30 (Xinhua) -- General Motors (GM) reported a net income loss of 758 million dollars on revenue of 16.8 billion dollars in the second quarter, the U.S. automaker released its second-quarter results on its website on Wednesday.

The sales dropped 34 percent year over year in the second quarter, but demand for its profit-rich trucks remained "resilient," as retail market share for GM full-size pickups increased to 36.1 percent from 35 percent in the second quarter.

By July 25, the Detroit-based automaker's overall inventory was at 480,000 units, comparing with 810,000 units at the end of the second quarter last year.

GM North American lost 100 million dollars in the second quarter; and GM International reported a loss of 270 million dollars.

GM consumed 7.8 billion dollars to make it through the second quarter, when the automaker closed its plants for half of the quarter due to COVID-19 pandemic. GM's liquidity at the end of June was 30.6 billion dollars.

The U.S. auto giant has ambitious plans to get back on track starting in August. It expects its operating profit to be in the range of 4 to 5 billion dollars, provided U.S. vehicle sales run at a 14-million-unit rate in the second half of the year, production is not interrupted, there are no significant supplier disruptions, and GM is able to rebuild inventory to 600,000 units by year end, the Detroit News quoted GM CFO Dhivya Suryadevara as saying on Wednesday.

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