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General Motors Co's top executive struck an optimistic note on Monday about U.S. new vehicle demand despite the coronavirus pandemic and the company's ability to sell electric vehicles at a profit, especially in China.
"We're cautiously optimistic" about U.S. new vehicle demand, Chief Executive Officer Mary Barra said at a virtual press event hosted by the Automotive Press Association. “We're hopeful that we’ll have a recovery because that's good for everybody.”
After two months of lost production as automakers shuttered plants to halt the spread of COVID-19, U.S. new vehicle dealers are running low on inventory, especially in the high-margin pickup truck segment that is dominated by GM, Ford Motor Co. and Fiat Chrysler Automobiles NV.
Barra said she expects GM will be "running full out" at plants that make those popular vehicles "in the near term."
Consultancy AlixPartners has predicted that major automakers face a "profit desert" as they invest heavily in developing electric vehicles despite consumers' ongoing preference for gas-guzzling cars, especially in the U.S. market.
When asked about that prediction, Barra said: "We are very excited with the portfolio of EVs we have coming.”
"We are going to continue on that path," she said. "We have a strong future ahead and I don't see that desert."
Industry data last week showed that China's auto sales in May rose 14.5 percent from the same month a year earlier, the second consecutive monthly increase as the world's biggest vehicle market recovers from lows hit during COVID-19 lockdowns.
Source(s): Reuters
