Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
A worker at the Vauxhall car factory in the U.K. gets his temperature read. Photo: Colin McPherson/Corbis via Getty Images
There's a growing consensus that automakers can safely resume vehicle production this month as they continue to ride strong demand for pickup trucks and SUVs through the coronavirus crisis.
The big picture: The pandemic crippled auto production and sales as it rolled across the globe, but signs of improving business in China are providing hope that the industry will see a similar V-shaped recovery in North America.
Driving the news: "We're certainly seeing green shoots in China," General Motors' CFO Dhivya Suryadevara told reporters during a call to review first-quarter results.
- In the U.S., she said, "there are bright spots in the industry," particularly surging truck sales in regions not heavily affected by the virus.
- Other automakers have also been encouraged by China's rebound, but Volkswagen warned that Europe could take longer to bounce back.
By the numbers: GM reported a net profit of $294 million, down 87% from the first quarter a year ago on a 6% drop in revenue to $32.7 billion — beating Wall Street's low expectations.
- GM also outperformed its Detroit rivals: Ford lost $2 billion during the period and Fiat Chrysler lost $1.8 billion.
Between the lines: This is the first big test of GM's resiliency since the global financial crisis in 2009 pushed the company into a government-backed bankruptcy.
- Over the past decade, GM has dramatically reshaped its business, shedding unprofitable businesses and closing underperforming factories, while strengthening its balance sheet and making big bets on an electric, self-driving future.
What's next: GM and FCA have announced plans to restart production in North America on May 18. Ford has not given a date, but will likely do the same.
- They'll start slowly, operating just one shift, and then gradually ramp up.
- Employees are being trained on strict health safety protocols developed jointly with the United Auto Workers union.
What to watch: Vehicle demand is still in question. While China's rebound is encouraging, the economic fallout of the prolonged shutdown of the American economy is too difficult to read, GM officials said.