GM Announces Quarterly Profit, Aims for May 18th Restart

Steph Willems
by Steph Willems
gm announces quarterly profit aims for may 18th restart

Like its domestic rival, Fiat Chrysler, General Motors is also looking to begin firing up U.S. assembly plants on May 18th. The news first came by way of The Detroit Free Press, which learned of alerts sent from plant managers to UAW workers at GM’s Lansing Delta Township and Flint operations. The automaker later confirmed this via its first-quarter 2020 earnings report.

The non-renewal of Michigan’s stay-at-home orders (which run through May 15th), coupled with a new, company-wide health protocol and the UAW’s quiet acquiescence to a Detroit Three reopening, seemed to pave the way for a firm restart date.

But first, that profit. Pegged at $294 million, the black ink came as a surprise to many, though analysts predicted that GM was the Detroit Three member most likely to come out on top in Q1. Ford and FCA both announced steep losses last week.

Via Reuters, GM Chief Financial Officer Dhivya Suryadevara said the company would not provide a 2020 profit outlook just yet, adding, “With the level of uncertainty out there, it’s too early to tell until the economy starts to open up.”

Suryadevara said the production shutdown and cratered sales stemming from the coronavirus pandemic axed $1.4 billion from the automaker’s Q1 profit. Like its rivals, GM expects Q2 to be the “hardest hit, she added. GM also burned through more than $900 million in cash during the previous three months, though it ended the quarter with $33.4 billion in liquidity. The automaker moved fast to bolster its bottom line with credit back in March.

News of the profit added buoyancy to GM’s stock, with share prices rising 7 percent in early Wednesday trading.

As for the restart date, GM aims to have the bulk of its non-Mexican North American plants online as of May 18th, stating, “Based on conversations and collaboration with unions and government officials, GM is targeting to restart the majority of manufacturing operations on May 18 in the United States and Canada under extensive safety measures.”

In Mexico, where the coronavirus outbreak is expected to peak this week, President Andres Manuel Lopez Obrador said recently he would like the nation’s economy to fully open by June 1st. Should that occur, it’s assumed that auto plants will be among the businesses throwing open their doors.

[Image: General Motors]

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  • Scott Scott on May 06, 2020

    At least one Canadian plant is opening (slowly) sooner, St. Catharines Powertrain starts up on the 11th for one engine one shift of production.

  • APaGttH APaGttH on May 07, 2020

    Someone needs to do a welfare check on the misogynists among the B&B. Yup, Mary sure is terrible for GM. Turning a profit despite the fall strike and losing most of March to sales. She is sure horrible for GM. Har! Har! Har!

    • See 1 previous
    • Lorenzo Lorenzo on May 10, 2020

      According to Peter DeLorenzo, it's the "true believers" at GM who are keeping the company afloat, in spite of Mary and the usual suspects in the silos. It'd not a knock on females to criticize the long list of GM CEO's/Chairmen. Mary Barra is no better nor worse than Dan Akerson, Ed Whitacre, Fritz Henderson, or Rick Waggoner. It's not even a knock on Barra and her non-auto background. She was preceded by a naval officer, a telephone guy, a front office GM lifer, and a basketball player! While they were all in over their heads, there were the true believers and car guys like Maximum Bob Lutz keeping the machine running.

  • Tassos The EQS is the best looking BEV, better than even the only Tesla I would ever consider (the S) and more luxurious inside etc etcThe self driving features will come in handy when I'm 110 and my eyesight and reaction times start to suffer.But that's four decades away, and only Tim recommends 40 year old "used cars"
  • Tassos "Baby, Baby light my fire!""Oh God please give me a Kia Forte" --Janis Joplin
  • Tassos The fugly looks of any Subaru, and especially the non-sporty non-elegant, fugly, low-rent looks and interior of the WRX are alone a sufficient turnoff to never want to own one.One can be a 100% car enthusiast but ALSO demand a beautiful AND luxurious vehicle one can be truly proud of and which makes one very happy every time one drives it.The above is obviously totally foreign to Subaru Designers and managers.Αnd who cares if they sell all they make? this is 100% worthless bragging, since they hardly make ANY. ALL of Subaru's models together, all dozen of them, sell less than the top selling Toyota or Honda or even Tesla sells. ANd furthermore, if you have the intellectual horsepower to understand it, bulldude, which I am 99% sure you sure as hell do not, it is NOT about the sales units, it is not even about the sales revenue.It is all about the P R O F I T S.Am I going slow enough for you, bulldude?
  • Thehyundaigarage Am I the only one that sees a Peugeot 508?
  • Lou_BC I realized it wasn't EV's burning by the absence of the usual suspects.