GM Posts $806 Million Loss As Pandemic Dampens Sales
(CNN) - GM reported an $806 million loss in the second quarter Wednesday and a 47% drop in revenue when compared to the same period last year, while COVID-19 continues to spread.
Vehicle sales in the US during the quarter dropped by about 34% when compared to a year ago. GM said that reduced demand and tight dealer inventories contributed to the decline.
GM found some cause for optimism during a difficult period, however. Overall sales bottomed out in April. In May and June, sales were about 20% less than the same period last year. GM's stock was down more than 3% Wednesday morning following the news.
Nearly all plants have returned to pre-pandemic shift levels and US dealer stocks are growing again, according to the company. GM lost more than two months of production during the crisis.
GM has cut advertising costs and discretionary spending furloughed some employees and deferred compensation in an effort to weather the pandemic.
"We have a track record of making swift and strategic decisions to ensure our long-term success for the benefit of all our stakeholders. We will continue to drive the necessary change throughout the company," GM CEO Mary Barra said in a statement.
Wednesday morning GM also released a new advertisement for its electric Hummer, which included a profile outline view of a pre-production model of the SUV. The Hummer is scheduled to be revealed this fall and produced in the fall of 2021.
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