GM Expects Slight Increase in Operating Profit in 2013 image

GM said that he expects 2013 operating profit to see a modest increase in each region, but greater demand in China and the US.

“We’re very much focused on this huge wall of new product that we have ready to bring into the market place,” said Chief Financial Officer Dan Ammann. “The real focus for us this year is on execution of these launches.”

Analysts predict that GM’s profit this year will be $3.89 a share, an increase from the estimated $3.27 a share for 2012. GM expects auto sales in the US to increase 5% in 2013 and the company is targeting 10% operating profit margins, an increase from the current 8%. In 2011 GM and its JVs in China began rolling more than 60 upgraded or new models to be introduced in the country through 2015.

The automaker said that although it expects auto market in Europe to drop 4% and deal with pricing pressure, the company will still see a modest share gain. In South America, GM predicts a moderate industry growth and a slight market share rise this year. Ammann also added that GM plans to invest $8 billion annually in vehicle development in order to sustain its profits.