Normal Motors mentioned Wednesday that it’s going to earn $ 6.4 billion in 2020, a modest drop from the yr earlier than, as speedy gross sales of vehicles and sports activities automobiles within the second half of the yr offset harm to its exercise attributable to the pandemic within the spring.
The automaker mentioned revenues fell 11 p.c to $ 122 billion from $ 137 billion in 2019, when it reported a internet earnings of $ 6.7 billion.
“GM’s 2020 efficiency has been exceptional for each measure, and much more so in a yr when a world pandemic has precipitated the world’s companies – together with GM – to quickly droop manufacturing,” mentioned Mary Barra, the manager director of the corporate in a letter to shareholders.
The pandemic pressured GM and different automakers to close down all of their North American crops for about 60 days final spring, and precipitated a pointy drop in gross sales of latest automobiles.
Automotive producers have additionally struggled within the pandemic with a scarcity of semiconductors wanted for features similar to contact screens, computerized engine controls and transmissions. New vehicles can have greater than 100 semiconductors.
The scarcity of chips will proceed even into 2021. This has led GM to chop its forecast for working revenue this yr from $ 1.5 billion to $ 2 billion.
In a convention name with reporters, Ms. Barra mentioned GM was working with suppliers to verify he had the chips he wanted, and anticipated to have the ability to make up for any misplaced manufacturing over the course of the yr.
“The shortage of semiconductors isn’t slowing down our development plans, and with out mitigation methods we nonetheless count on to see an excellent yr for Normal Motors,” he mentioned. “Proper now, we’re not going to lose any manufacturing because it involves massive vehicles and SUVs all yr spherical.”
Among the many full-size automobiles that the corporate has, there’s a Hummer electrical pickup truck that can start transport later this yr. It’s certainly one of 30 electrical automobiles that GM plans to introduce by 2025 as a part of a broader purpose set on the finish of final month to promote solely zero-emission automobiles by 2035.
The corporate at present makes only some electrical automobiles, together with the Chevrolet Bolt, however spends rather a lot to extend its choices and compete with Tesla, the main producer of electrical vehicles. This yr, GM will spend greater than $ 7 billion to develop electrical and autonomous automobiles. By 2025, it plans to spend greater than $ 27 billion on these two applied sciences.
Ms. Barra mentioned Wednesday that she and different GM officers had spoken with President Biden and his aides concerning the firm’s plans for electrical and autonomous automobiles. Biden mentioned he intends to accentuate the combat in opposition to local weather change and needs the federal government to assist create hundreds of thousands of jobs in renewable vitality and in automobile manufacturing.
“The Biden administration is more and more aligned across the significance of home manufacturing and the necessity for widespread adoption of electrical automobiles,” he mentioned. “We stay up for working with the administration on insurance policies that help secure transportation and nil emissions.”