General Motors surpasses estimates in Q2, vows to trim inventory

US carmaker General Motors cut costs in the second quarter to post a better-than-expected net income for the period, according to its latest earnings report.

The Detroit company also promised to cut its high inventory of unsold vehicles as industry experts predict a major slowdown in the auto industry after several years of record sales.

Net income for three months to June 30 was down to $2.8bn from $2.4bn in the same quarter in 2016, equating to $1.60 per share.

Excluding one-off charges, the company reported EPS of $1.89, ahead of the $1.69 estimated by analysts ahead of the report.

Revenue for the biggest if the so-called ‘Big Three’ of US carmakers was just below last year’s figure at $37bn, but missed the $40.1bn forecast by analysts.

GM is currently preparing for the launch of several new vehicles in 2017, including the GMC Terrain, Chevrolet Traverse and Buick Enclave.

However, the firm will attempt to reduce its stockpile of cars after stating in June that it had a 105-day supply of vehicles, higher than the 90-day supply it had forecast.

GM Chairman and CEO Mary Barra said a ‘relentless focus’ was the main driver of success in the first half of 2017.

Barra said: “Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid frst half of the year. We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders.”