The company essentially has been without revenue since early March, meaning that the second quarter almost certainly will be worse.
The president sat down with"World News Tonight" anchor David Muir for an exclusive interview about the decision to reopen the economy.DETROIT -- General Motors' first-quarter net income fell 88%, but it still managed to make $247 million despite the arrival of the global coronavirus pandemic.
On a conference call with reporters Wednesday, Suryadevara said demand has been stronger in some pockets of the U.S. where truck sales are high and cases of the coronavirus are relatively low. North America is by far GM's most profitable market. But Edward Jones analyst Jeff Windau said the southern and western states have been hit hard by slowdowns in the oil and construction businesses that have brought job furloughs. Both businesses typically are big pickup truck customers.
The automaker has suspended its full-year financial guidance, and Suryadevara conceded the second quarter will be tough. She said she can't predict consumer demand for certain, but believes that customers are moving to online sales. GM's sales website has had a 40% increase in traffic since the pandemic began, she said. Many states have forced auto dealers to close showrooms.
Suryadevara said GM entered the crisis from a strong position as it shed unprofitable businesses and restructured to cut costs. The company burned through $900 million in cash from January through March, reflecting the normal seasonal spending plus $600 million in costs due to the virus, she said.
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