COVID-19 (coronavirus) pandemic halts manufacturing and revenue growth
In 2020, GM temporarily stopped manufacturing new automobiles due to the COVID-19 (coronavirus) outbreak. This was largely due to fear of unprecedented inventory of unsold vehicles as the result of crippled demand. GM instead sought ways to adjust its manufacturing schedules to help produce and provide needed medical equipment, such as ventilators, to state governments that were hit hardest by the pandemic. While auto production resumed in late May, demand declined in 2020 overall for industry operators. In 2022, demand is anticipated to increase for news cars, despite falling per capita disposable income.
COVIDIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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