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"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 <F.N>
and Fiat Chrysler Automobiles NV <FCHA.MI> <FCAU.N>.
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% from the same month a year earlier, the second
consecutive monthly increase as the world's biggest vehicle
market recovers from lows hit during coronavirus lockdowns.
Barra said that GM's lineup of vehicles, including its upcoming
EV models, position the automaker for growth in China.
"I think we're going to be in a sweet spot where there is a
growth opportunity in that market," she said. "We're looking for
profit and volume growth in China."
(Reporting By Nick Carey; Editing by Cynthia Osterman)
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