GM Ekes Out Slim Q1 Profit, Sets Restart Date

As it reported a $294 million first quarter profit General Motors Corp. said Wednesday it  is targeting May 18 as the date to reopen the majority of its manufacturing operations in the U.S. and Canada under what it termed “extensive safety measures.” 

In its release GM said the procedures would “meet or exceed CDC (Centers for Disease Control) and WHO (World Health Organization) guidelines and are designed to keep people safe when they arrive, while they work and as they leave the facility.” 

Since shutting down vehicle production in March due to the coronavirus pandemic, GM swung over to building ventilators at its Kokomo, Ind. facility in collaboration with Washington-based Ventec Life Systems and temporarily converted its Warren, Mich. plant to produce personal protection equipment for health care workers. 

Among the three Detroit-based automakers, GM was the lone company to stay in the black during the first three months of the year. Last week Ford Motor Co. said it lost $2 billion and on Tuesday Fiat Chrysler Automobiles reported a $1.9 billion Q1 loss with plans to restart operations the week of May 18. The losses, and GM’s thin profit, were mainly attributed to effects on production and the economy by the pandemic.  

The ability to eke out any sort of profit during these tough times led GM Chairman and CEO Mary Barra to say in a statement, “The strength of this company has always been its people, and I am proud to stand with our best as we confront these challenges together – as one team – while we continue our transformation. We have a track record of making swift, strategic and tough decisions to ensure our long-term viability and create value for all of our stakeholders.” 

Contributing to GM’s profit was the continuing strength in sales of its high-profit pickup trucks. Despite an overall 7% decline in U.S. sales during the first quarter, the company said sales of full-size pickup trucks increased about 27% during that period. 

This story will be updated following GM’s briefing for industry financial analysts and journalists.