GM Expects Profits to Rise in 2014 on New Vehicles
General Motors (NYSE: GM) forecasts modest global industry growth in 2014 driven by the United States, China and Europe. Based on this outlook and the introduction of key vehicles globally, the company expects its total earnings before interest and tax (EBIT) adjusted to be modestly improved with improved underlying operating performance more than offsetting increased restructuring expense.
“We continue to perform well in the two most important markets in the world, the U.S. and China,” said GM CEO Mary Barra. “We’re taking advantage of our strength in these countries to restructure and make the investments necessary to grow profitably in other parts of the world.”
Following 18 vehicle launches in 2013 in the U.S., the company will introduce 15 new or upgraded models in that market this year. In China, GM and its joint venture partners will introduce 17 new or upgraded models in 2014. The company also announced plans to open four additional plants in China through 2015, enabling production of up to 5 million units annually.
Vehicles being introduced in key markets globally in 2014 include the Chevrolet Silverado HD, Tahoe, Suburban, Colorado, Aveo and Sail; Cadillac ATS Coupe, CTS and Escalade; GMC Sierra HD, Yukon XL, Denali XL and Canyon.
Among key accomplishments for 2013:
- Executed successful global vehicle launches.
- Received most initial quality awards among automakers in 2013 J.D. Power and Associates Initial Quality Study.
- Improved revenue, EBIT-adjusted and margins.
- Announced GM International Operations restructuring including plans to discontinue Chevrolet’s mainstream presence in Western and Eastern Europe and transition to a national sales company in Australia with its Holden brand.
- Completed the acquisition of substantially all of Ally Financial’s international operations.
- Added to the S&P 500 index.
- Refinanced $4.5 billion in high-cost obligations, increasing financial flexibility.
- Achieved investment grade rating with Moody’s Investors Service.
- Monetized non-core assets including Ally and PSA ownership stakes.
- The U.S. Treasury divested its ownership stake.
- Announced senior leadership succession plan.
About General Motors Co.
General Motors Co. and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information at: www.gm.com.
Category: General Update, Vehicles
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