GM Earnings Cruise Past Analysts' Estimates
The second quarter was a rough period for traditional automakers like General Motors (NYSE: GM). The COVID-19 pandemic disrupted production, particularly in North America. Meanwhile, many dealers were forced to shift to virtual operations for a lengthy period, adding to the sales headwinds from low inventory and weak economic conditions.
That said, austerity measures and strong demand for GM's recently upgraded full-size truck lineup mitigated the pressure on earnings more than Wall Street analysts had expected. Barring any further pandemic-related setbacks, the company is set to deliver surprisingly solid business performance in 2020 and beyond.
Like most of its fellow U.S. automakers, General Motors halted production in North America, its main market, in mid-March to slow the spread of the novel coronavirus. Production remained suspended for more than half of the second quarter. Furthermore, while production resumed on May 18, all plants initially operated with a single shift. GM's U.S. truck plants didn't return to normal three-shift operations until the beginning of June.
Source Fool.com
