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GM posts $800 million loss in 2Q

4K views 33 replies 14 participants last post by  jpd80 
#1 ·
https://www.detroitnews.com/story/b.../29/gm-posts-800-million-loss-2-q/5528019002/

Detroit — General Motors Co.'s reported a second-quarter income loss of about $800 million, a 132% year-over-year drop as a result of of the coronavirus pandemic, the automaker said Wednesday.

Revenue totaled $16.8 billion in the second quarter, down 53% from the second quarter of 2019. GM burned through $7.8 billion to make it through the quarter.

The pandemic forced GM and ts rivals to close plants for half of the second quarter, which runs April through June. Plants reopened in mid-May. With some dealers in desperate need of inventory, GM and other automakers have pushed to resume full production even as they battle high absenteeism amid the continuing 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," 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.”

With state economies shut down for much of the second quarter, GM's sales dipped 34% year over year, but demand for its profit-rich trucks remained "resilient," GM said. Chevrolet Silverado light-duty sales came in at 89,465, down 18.6% from last year. Silverado heavy-duty sales were off just 0.7% with 31,279 sales. GMC Sierra light-duty sales came in at 38,825, down 9.5% from last year. Sierra heavy-duty sales were up 7.6% with 14,999 sales.


GM is upping its production levels of the light-duty trucks at the Fort Wayne, Indiana plant starting in September, which will allow the automaker to push out an additional 1,000 units a month.

Meanwhile, GM is still struggling through absenteeism issues at plants. High levels of absent workers nearly pushed the automaker to suspend the third shift at the Wentzville, Missouri, truck plant. Instead the Detroit automaker came up with a plan to keep all three shifts operating that could include transferring workers from other plants like the Spring Hill, Tennessee, plant that just lost a shift because of lack of demand for its product.
 
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#4 · (Edited)
The part I'm confused/challenged with is this...................

"GM burned through $7.8 billion to make it through the quarter."

Not sure how that computes?

:ponder:
I will help.

You recall the New York Coffee House? That's just a Drop in Da Bucket now.

It will be interesting to see "Mary's" income for 2020. Not that Covid is Her fault, but +/- Income vs Performance Salary wise. I mean $7.8 Billion could have been worse, NO?
 
#5 ·
I wonder if GM is trying to address the high rates of absenteeism in their plants?

First, the corrupt UAW leadership ordered their workers to strike for 40-days, and now many are not reporting for work. All of the absences cannot be a result of illness.

I wish GM and the UAW would explain thei reason the workers are staying away in droves.
 
#10 ·
+1
The unusually high rates of absenteeism at certain GM facilities are not due to sick/family/medical leave or anything else related to the Families First Coronavirus Response Act (FFCRA or Act). A lot of people within and external to General Motors would like to know what's going on here.
 
#16 ·
certainly has taken its toll. It's much the same here. Inventory sucks, Cadillac models went to the side and trucks in front. I wasn't paying particularly close attention but am guessing now about a half a dozen to ten maybe of various models. Same for most all the rest of the Chevy models, year end aside, they don't have squat for inventory. Covid 19 certainly has taken its toll.
 
#29 · (Edited)
I am an example of GM's problem during this pandemic.

In December 2019, we made the decision to replace my wife's 2009 Ford Focus. I went to the Montreal auto show to start my shopping.

Some research, some test drives and I made my choice. A 2020 Chevrolet Bolt Premier. I wanted to change after winter to have time to order quality winter tires for winter 2020-2021. You have to understand that where we live winter tires are mandatory and the choice is limited after December.

Then came the pandemic

Our two cars are collecting dust in the driveway. Since mid-March we have put gasoline twice in the Focus and twice in my 2009 dodge Grand Caravan.

We have been working from home since the pandemic. From September 2021 to June 2021, my wife will be working 3 days a week from home.

I don't see why I would change my car now.

In the long run I doubt we will need to have two cars.

My workplace is a high school one block from my children's school. I got the bikes out and it's faster than the car to get to my job or for the kids to go to school. I had forgotten that the dedicated bike lanes were so great for getting around quickly and economically.

We also realized that they've grown up and now they could easily walk to school if they don't take their bikes.

Another habit that has changed: I discovered lots of local merchants. I hardly use the car to shop for the week anymore.

When life gets back to normal I will still have both cars. They will be older but it is likely that I will replace them with one vehicle.

My doctor thinks it will be good for my health.

GM lost one Chevrolet Bolt sale this year. The entire auto industry has lost a customer for life.
 
#34 ·
In saying that, Ford also paid off more than half of its $15.4 billion revolver Line of credit
and finished Q2 with $39 billion in cash. Mind you, I wouldn't be surprised to learn that
better position all came about because Ford had some repayments renegotiated to 2021.
Banksters were smart enough to allow Ford to repay when things are hopefully better.
 
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