DETROIT – General Motors’ profit fell 4.5% in 2020, but a strong second half more than offset the effects of pandemic-related factory closures and a costly air bag recall. The Detroit automaker said Wednesday it made $6.43 billion as demand for its vehicles surged late in a year dominated by coronavirus upheaval. The United Auto Workers union called this profit a “testament” to its membership in a statement released Wednesday morning:“Despite a year of a pandemic and loss of production in 2020, General Motors reported a solid profit for North America. This is a testament to our UAW-GM Membership, who produce some of the finest and most sought-after vehicles in the world, right here in the U.S.A.”Read more here. AdLast year: GM churns out profit in 2019 despite strike, slumping sales

General Motors net profit fell 4.5% in 2020, but a strong second half more than offset the effects of pandemic-related factory closures and a costly air bag recall. (AP Photo/Richard Drew, File)DETROIT – General Motors' profit fell 4.5% in 2020, but a strong second half more than offset the effects of pandemic-related factory closures and a costly air bag recall. GM predicted the shortage will cost it $1.5 billion to $2 billion in earnings before taxes this year due to lost production. Still, GM expects pretax income for the year of $10 billion to $11 billion, or $4.50 to $5.25 per share. Of that, $6 billion would go to electric vehicles and $1 billion would go to autonomous, Chief Financial Officer Paul Jacobson said.

Customers line up at a drive thru self-swab coronavirus test site at a local CVS Pharmacy Sunday, June 14, 2020, in Phoenix. (AP Photo/Ross D. Franklin)CVS Health is reporting surprisingly strong second-quarter earnings in part due to postponed elective medical procedures during the pandemic, and it raised its profit expectations for the year. For the three months ended June 30, CVS earned $2.99 billion, or $2.26 per share. Adjusted for one-time gains and costs, earnings were $2.64 per share. CVS said Wednesday that the COVID-19 pandemic resulted in lower benefit costs due to the deferral of elective procedures and other discretionary use of its health care benefits segment.

The company reported a loss of 50 cents per share excluding one-time items. GM burned through more than $9 billion during the quarter including nearly $8 billion from operations and $1.1 billion in capital spending. GM said sales are showing signs of improvement, and in some areas, such as pickup trucks, have been constrained by low inventory levels as plants came back on line. The company reported strong sales of pickup trucks and new full-size SUVs such as the Chevrolet Tahoe and GMC Yukon. But Japans struggling Nissan reported a $2.7 billion loss (285.6 billion yen) for the period.

DETROIT Two thirds of the Big Three have released their second quarter sales numbers and they are not good. GMs year-over-year-sales were down 34%, selling nearly 500,00 vehicles; and it was even worse for FCA with its second quarter sales falling 39%, selling 367,000 vehicles. Analysts expected numbers to drop amid COVID-19, but not this much. GM sold 17 million vehicles in 2019 and is excepted to be closer to 13 million in 2020. Autotrader analyst Michelle Krebs said fleet sales should pick up to make for a good year.