2021 Chevrolet Tahoe High Country. Photo: GM

The pandemic threatened to decimate the American auto industry, but Detroit's three carmakers posted better-than-expected financial results for the second quarter, despite two-month factory shutdowns.

The big picture: The industry burned through cash while its factories were shuttered, piling up billions of dollars in losses between them. But they rebounded fairly quickly in June after restarting production while scrambling to restock dealer lots.

  • The U.S. consumer played a role, too: While they bought 33% fewer vehicles in the second quarter vs. last year, the pandemic's economic impact could have been worse.
  • Despite stay-at-home orders, many consumers embraced new online-ordering processes and took delivery of their new vehicles at home rather than at the dealership.
  • Strong demand for highly profitable trucks and SUVs also helped.

By the numbers: Each of the companies outperformed Wall Street expectations.

  • GM's adjusted operating loss was $500 million in the second quarter.
  • Ford posted an operating loss of $1.9 billion, not counting a $3.5 billion gain on its investment in self-driving tech company, Argo AI.
  • Fiat Chrysler Automobiles' adjusted operating loss was $1.1 billion.
  • Of note: Tesla posted a $327 million operating profit during the period, but that includes $428 million worth of income from selling regulatory credits to other carmakers.

What to watch: While FCA prepares to merge with France's PSA Groupe and Tesla focuses on expanding production capacity, GM and Ford are gearing up for some of their most anticipated — and profitable — models.

  • For GM, these include the redesigned Chevrolet Tahoe and GMC Yukon.
  • For Ford, it's the redesigned F-150 pickup, plug-in Mustang Mach-E, and in 2021, the reborn Ford Bronco family of SUVs.

Go deeper

Sep 4, 2020 - Economy & Business

What we're driving: The 2020 Ford Edge ST

Ford Edge ST. Photo: Ford

This week I'm driving the 2020 Ford Edge ST, a V6-powered, all-wheel-drive, performance version of the mid-size crossover utility, which boasts 335 horsepower and goes from 0-60 in under six seconds.

My thought bubble: I've never really understood the concept of a performance utility vehicle.

Quibi says it's shutting down

Photo: Igor Golovniov/SOPA Images/LightRocket via Getty Images

Quibi, the mobile-only video subscription streaming service, is shutting down, the company announced Wednesday. The company said the decision was made to preserve shareholder equity.

Why it matters: Quibi had struggled to hit its subscriber growth targets amid the global pandemic. The app launched six months ago.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Senate Democrats block vote on McConnell's targeted COVID relief bill McConnell urges White House not to strike stimulus deal before election.
  2. Economy: Why the stimulus delay isn't a crisis (yet).
  3. Health: New York reports most COVID cases since MayStudies show drop in coronavirus death rate — The next wave is gaining steam.
  4. Education: Schools haven't become hotspots — San Francisco public schools likely won't reopen before the end of the year.
  5. World: Spain becomes first nation in Western Europe to exceed 1 million cases.