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]