Net loss of $800 million, General Motors releases Q2 financial report.

On July 29th, General Motors (GM) released its Q2 financial report. Due to the impact of the pandemic, there were some ups and downs compared to Q1. Here are some key points:

1. Net revenue was $16.8 billion, compared to $32.7 billion in Q1. Net loss was $800 million, compared to net income of $300 million in Q1.

2. Cash flow from operating activities for the automotive business decreased from $300 million in Q1 to -$8 billion.

3. In North America, adjusted earnings before interest and taxes (EBIT) was -$10 million, compared to $220 million in Q1.

4. The impact on the international market was slightly smaller, with adjusted EBIT of -$30 million. Wholesale sales in the international operations department decreased due to the reduction of a portion of the international market earlier.

5. Cruise’s adjusted EBIT was -$20 million, unchanged from Q1.

6. GM Financial’s pre-tax income remained the same as Q1 at $20 million. GM mentioned that the pandemic caused an increase in loan loss provisions, a decrease in residual values, and accelerated depreciation, which had a certain impact on GM Financial.

7. The good news is that the business performance in the Chinese market has significantly rebounded compared to Q1, with investment income reaching $20 million.

8. Due to the release of operating funds and the impact of the pandemic on finance, Q2’s free cash flow for the automotive business was -$9 billion, a year-on-year decrease of $11.6 billion.

Current Situation and Plans

1. GM will continue to invest in key projects, including electric cars, autonomous vehicles, full-size pickups, and crossover models.

2. In Q2 of this year, the joint venture between GM and LG Chem officially broke ground on a battery manufacturing plant located in Lordstown, Ohio.

3. Cadillac LYRIQ, built on the all-new Ultium battery system, will be globally unveiled on August 6th. The GMC Hummer electric pickup is scheduled to debut in Q4.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.