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With factories dark, GM profit slumps 88%; 2Q likely worse

DETROIT — General Motors’ first-quarter net income fell 88 percent, but it still managed to make $247 million despite the arrival of the global coronavirus pandemic.

U.S. automakers suspended production in much of the world in late March. For GM, that clipped revenue for the quarter by 6 percent, to $32.7 billion, but that’s not as bad as industry analysts had been expecting.

Shares jumped 6 percent Wednesday.

The company essentially has been without revenue since early March, meaning that the second quarter almost certainly will be worse.

GM plans to reopen most of its U.S. and Canadian factories starting May 18, and Chief Financial Officer Dhivya Suryadevara said Wednesday there are signs that demand for cars and trucks exists despite the pandemic.

Suryadevara said demand has been stronger in some pockets of the U.S. where truck sales are high and cases of the coronavirus are relatively low.

“There are bright spots within the industry,” Suryadevara said. “Obviously trucks are our strong suit, and that’s something we’re going to capitalize on.”

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