General Motors lowers its profits 86% affected by COVID-19
General Motors reported Wednesday that its net profit decreased 86.3% in the first quarter of 2020, to $ 294 million, at the annual rate.
The company said that to protect employee safety in response to the COVID-19 pandemic, it extended its China holiday closure in January and suspended production in North and South America in March.
Under rigorous safety protocols, production was able to continue during the first quarter in Korea, and operations gradually restarted in China in mid-February.
In addition, General Motors is undertaking considerable planning to restart operations in North America.
«Based on conversations and collaboration with unions and government officials, General Motors aims to restart most manufacturing operations on May 18 in the United States and Canada under extensive security measures,» he said.
These procedures meet or exceed the guidelines of the Centers for Disease Control and Prevention and the World Health Organization (WHO), and are designed to keep people safe when they arrive, while they work, and when they leave the premises.
General Motors: Results
The company recorded revenues of $ 32,709 million, between January and March, a decrease of 6.2% year-on-year
In particular, the North American division of General Motors had revenues of $ 25,831 million, a 5.6% drop, at the annual rate.
«We are focused on preserving liquidity and making the right decisions to make the company stronger and more competitive in the long term as we navigate these unprecedented times,» said General Motors Chief Financial Officer Dhivya Suryadevara.
