All the tax restructuring and refunds in 2017 that allowed corporations to buy-back their stocks was all for not. Most probably, GM will issue more stock sales. It isn't doing badly. The fact they are striving to maintain a great company in the USA by spending all their ready cash only goes to prove how smart GM's leadership has become. I congratulate Mary Barre for maintaining GM solvency during a nearly impossible time in the USA.
By Jamie L. LeReau
General Motors reported Wednesday (click here) its net income tumbled on slow sales and thin inventory in the second quarter, especially of its profitable pickups and SUVs following an eight-week factory closure because of the coronavirus pandemic.
GM, the first of the Detroit Three automakers to release report second-quarter numbers, announced a net loss of $800 million, down 132% from the same time a year ago. Its earnings before interest and taxes adjusted were a loss of $500 million, down 118%. Net revenue was down 53% to $16.8 billion, but GM's China equity income was $200 million for the quarter.
Most striking was its cash burn during the quarter. GM spent $8 billion in automotive operating cash.
But during a call with the media, GM CFO Dhivya Suryadevara said the second half of the year will be better and it should allow GM to pay off the $16 billion revolving line of credit it took earlier this year to get through the pandemic....
