General Motors reports $758 million Q2 loss on lower car sales amid pandemic

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by French Press Agency – AFP
The General Motors logo on the world headquarters building is seen in Detroit, Michigan, U.S., Sept. 17, 2015. (Getty Images / AFP Photo)

General Motors reported a smaller-than-expected loss Wednesday as strong pricing for some newer auto models partially mitigated the hit from much lower sales amid the coronavirus pandemic.

The big U.S. automaker lost $758 million in the second quarter, compared with a $2.4 billion profit in the year-ago period.

The company described the results as “solid” amid the pandemic, and said steps it had taken to cut costs meant the automaker was well-positioned to weather the storm.

GM said some of the austerity measures, which included worker furloughs, would become permanent.

“We have a track record of making swift and strategic decisions to ensure our long-term success for the benefit of all our stakeholders,” GM Chairman and CEO Mary Barra said in a statement.

“We will continue to drive the necessary change throughout the company to enable growth as we prepare to deliver a world with zero crashes, zero emissions and zero congestion,” she said.

Strong truck and SUV sales continued to support U.S. results, GM said, but U.S. sales were down 34% due to the COVID-19-imposed production shutdowns.

Sales in China were down just 5.3% while global sales fell 24%, the company said.

Revenues were below expectations at $16.8 billion, but the results translated into a loss of just 50 cents per share, far better than the expected hit of $1.77 a share.

Shares of the auto giant rose nearly 4% in pre-market trading.

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