GM reports $35.5 billion in revenue for 3rd quarter despite pandemic setback
DETROIT Mich. (WJRT) - General Motors raked in $35 billion in revenue for the 3rd quarter of 2020.
“It’s very encouraging of course because the country is in such a deep recession with COVID-19, and usually in recessions companies like General Motors that build really expensive consumer items get hit really hard,” said University of Michigan-Flint economics professor Chris Douglas.
But that is clearly not the case. GM’s Flint Assembly plant for example is a powerhouse for the company’s heavy duty pickups
“At Flint truck assembly, they build roughly 1,000 trucks a day and someone’s waiting for the last one to come off the line today sometime. They’re waiting for that truck," said UAW Region 1D Director Steve Dawes.
In the third quarter of 2019, the company also reported roughly $35 billion in revenue. But fourth quarter revenue in 2019 dropped to about $30 billion because of the 40-day UAW strike.
Then the coronavirus pandemic hit toward the end of the first quarter this year, shutting the automaker down for about two months. GM CEO Mary Barra calling the company’s third quarter performance a testament to its resilience.
“People like homebuilders, commercial entities buying trucks, which is encouraging commercial activity is picking back up. It could also be consumers too. Consumers love to buy trucks to pull things like fifth wheels, RVs and so forth,” Douglas said.
Both he and Dawes believe GM’s third quarter success is a direct reflection of the company’s products and also meeting the needs of everyday consumers.
“They believe in us. They keep putting the money in there and we’re going to keep delivering them,” Dawes said.
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