GM is hopeful despite 2nd Quarter Decline

The automotive industry has encountered economic challenges in the past, and this year, it took another hard hit. The outbreak of a virus that made its way from China to the United States not only affected every family but millions of automobile factories and other businesses as well. General Motors is a leader in the global automobile market, but the company saw substantial decline in both income and revenue in its second quarter this year. GM employs both salary workers, as well as those who earn hourly wages. Despite losing weeks of production, the company says it nearly broke even in earning before interest and taxes in the second quarter throughout North America.

When the virus outbreak made its way across the country, numerous state governments began mandating shut downs of non-essential factories and other businesses. The shut downs sparked significant drops inventory, shipments and sales. GM suffered an $800 million loss on a revenue of more than $16 billion. Company CEO Mary Barra says GM is resilient and always has its stakeholders best interests in mind. Although the pandemic prompted more than a 50% decline in revenue and more than 130% decline in income compared to the second quarter of 2019, things could be a lot worse and are, in fact, looking bright for the future.

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