GM’s new focus pays off, even during pandemic

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Credit: General Motors

DETROIT (AP) – Despite a computer chip shortage that temporarily closed some of its factories, General Motors made a healthy $2.8 billion net profit in the second quarter.

The earnings came even though GM plants cranked out 200,000 fewer vehicles than they did during the same period in 2019, the last comparable quarter before the pandemic.

The automaker told the same story as rivals Ford and Stellantis, saying that high prices and strong demand for expensive pickup trucks and luxury SUVs overcame inventory shortages.

Excluding one-time items, GM made $1.97 per share, beating Wall Street estimates of $1.82. Revenue was $34.2 billion, which also exceeded analysts’ estimates. GM raised its guidance for the full year to pretax earnings of $11.5 billion to $13.5 billion.

In 2019, General Motors invested more than $4.2 billion in assembly plants in Indiana, Michigan and Texas to prepare for the launch of its next generation of pickups and SUVs.

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