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With factories closed, GM profit slumps 88%; second quarter likely worse

(WJRT)
Published: May. 6, 2020 at 12:21 PM EDT
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(5/6/2020) - General Motors’ first-quarter net income fell 88%, but it still managed to make $247 million as the coronavirus began to take hold.

U.S. automakers suspended production in much of the world in late March. For GM, that cut quarterly revenue by 6% to $32.7 billion, which was better than expected.

The second quarter almost certainly will be worse than the first. GM has had little cash coming in ever since because automakers count revenue when vehicles are shipped from factories.

But GM said it plans to reopen most of its U.S. and Canadian plants starting May 18. Its chief financial officer says there are signs of dealer and consumer demand for vehicles.

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