This result turned out to be much better than predicted by analysts interviewed by FactSet. After the announcement of the results, the carmaker’s shares rose by approximately 4.5%.
The American concern managed to fully recover from the COVID-19 pandemic and the quarantine restrictions imposed by the authorities in the spring. According to Morgan Stanley, demand for cars in the USA has already recovered to pre-crisis levels two months ago. GM’s revenue for the third quarter was $35.5 billion, which is identical to last year.
To a large extent, this was possible due to increased demand for large-size cars in the USA (crossovers, SUVs and pickups). These cars are more expensive, which ultimately offset the overall 10% drop in sales in the country at the end of the quarter.
China also helped the concern: local sales increased by 12% compared to last year. At the same time, the Chinese market was particularly successful in selling the group’s expensive car brands Buick and Cadillac, whose sales grew by 26% and 28% respectively.
source: bloomberg.com
