/ General Motors, Industry, News / GM hopes US and China growth will offset tougher regions

GM hopes US and China growth will offset tougher regions

Linked In Share
GM hopes US and China growth will offset tougher regions

According to its new executive team a modest growth in the United States and China this year would help General Motors fund about $1.1 billion in restructuring costs in other harder-hit regions, including Europe and Australia.

The new management team led by Chief Executive Officer Mary Barra and President Dan Ammann took the reins on Wednesday, saying the company expects a slight rise in pre-tax profits this year, while margins likely will remain flat until 2015.

China remains GM’s strongest market. The automaker plans to open four new plants there through 2015, increasing annual production capacity to 5 million vehicles, keeping neck and neck with chief rival Volkswagen AG. In comparison, GM built 3.3 million vehicles in North America last year.

“We continue to perform well in the two most important markets in the world, the U.S. and China,” Barra said in a statement. “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.”

GM plans to launch 17 new or upgraded models this year with joint-venture partners in China, including the Cadillac ATS, Chuck Stevens, who succeeded Ammann as chief financial officer, said at a Deutsche Bank auto analyst conference.

The automaker sold 3.1 million “very profitable” vehicles last year in China, Stevens said, and expects volume to grow again in 2014. Margins likely will remain flat this year, but GM anticipates improved sales and earnings in 2015, he said.

Europe remains something of a problem child for GM. The company cut its losses and boosted revenue there in the second half of 2013. With the withdrawal of the Chevrolet brand in Europe, GM’s Opel subsidiary expects a modest increase in sales volume and market share this year, Stevens said.

But GM Europe’s financial performance could deteriorate further, in part because of currency volatility in Russia and restructuring costs associated with the impending closure of Opel’s Bochum plant in Germany.

Slowing sales growth and higher incentives will put more pressure on U.S. vehicle prices and margins, said Stevens. But he acknowledged “a lot of uncertainty” in the highly profitable full-size truck market, where GM’s Silverado and Sierra will square off later this year against the redesigned Ford F-150.

Via Reuters

by Aurel Niculescu (my Google+) - Thursday, January 16th, 2014 - filed under General Motors, Industry, News. Image credit: .
Linked In Share
Related Articles
2014 Forecast GM


Discuss: GM hopes US and China growth will offset tougher regions

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Alonso thought he was 13 after Barcelona crash
Alonso thought he was 13 after Barcelona crashMar.5 (GMM/Inautonews.com) Fernando Alonso's most striking symptom after crashing in Barcelona eleven days ago was a total loss ...
Ferrari talks began in 2008 – Vettel
Ferrari talks began in 2008 – VettelMar.5 (GMM/Inautonews.com) Sebastian Vettel on Thursday admitted his first hint of a future Ferrari deal came many years ...
2015 Geneva Motor Show: Volkswagen Golf GTD Variant
2015 Geneva Motor Show: Volkswagen Golf GTD VariantVolkswagen has made the public debut of the Golf GTD Variant at the 2015 Geneva Motor Show, after it has been unveiled online in ...
[VIDEO] Range Rover Evoque Cabrio officially announced
[VIDEO] Range Rover Evoque Cabrio officially announcedLand Rover has officially announced its plans to offer the Range Rover Evoque Cabrio for its customers in the near future. The ...
2015 Geneva Motor Show LIVE: Kahn Flying Huntsman 6×6 Concept
2015 Geneva Motor Show LIVE: Kahn Flying Huntsman 6×6 ConceptThe Kahn Flying Huntsman 6x6 Concept has been officially presented to the public, in a premiere, during the 2015 Geneva Motor ...
2015 Geneva Motor Show LIVE: Mercedes-Benz GLE 450 AMG Coupe
2015 Geneva Motor Show LIVE: Mercedes-Benz GLE 450 AMG CoupeThe European premiere of the Mercedes-Benz GLE 450 AMG Coupe has been made recently during the 2015 Geneva Motor Show. After it ...
2015 Geneva Motor Show LIVE: Hyundai Tucson 48V Hybrid
2015 Geneva Motor Show LIVE: Hyundai Tucson 48V HybridThe Hyundai Tucson 48V Hybrid has been officially presented to the public during the 2015 Geneva Motor Show, along with the ...
2015 Geneva Motor Show: Brabus Rocket 900
2015 Geneva Motor Show: Brabus Rocket 900Brabus has worked its magic these days on the Mercedes 65 AMG as the model has been shown in Geneva under the Brabus Rocket 900 ...
2015 Geneva Motor Show: Kia Cee’d GT Line
2015 Geneva Motor Show: Kia Cee’d GT LineKia has officially unveiled the Cee’d GT Line at the 85th edition of the Geneva Motor Show as it will be offered for sale close ...
2015 Geneva Motor Show: Hyundai ix20 facelift
2015 Geneva Motor Show: Hyundai ix20 faceliftThe compact MPV Hyundai ix20 has received a facelifted version during the 2015 Geneva Motor Show. Hyundai is present these days ...
Report – Great Wall to resume flagship H8 sales in China this April
Report – Great Wall to resume flagship H8 sales in China this AprilGreat Wall Motor Co., the country’s largest producer of SUV models has planed to restart deliveries of its top priced sport ...
US: FCA might increase Ferrari’s IPO above planned 10 percent level
US: FCA might increase Ferrari’s IPO above planned 10 percent levelFiat Chrysler Automobiles NV could ultimately sell more than the planned 10 percent stake through an initial public offering this ...
2015 Geneva Motor Show LIVE: Infiniti Q60 Concept
2015 Geneva Motor Show LIVE: Infiniti Q60 ConceptInfiniti has officially pulled the wraps off the Q60 Concept during the 2015 Geneva Motor Show, as the model has recently made ...
2015 Geneva Motor Show: Audi R8 LMS
2015 Geneva Motor Show: Audi R8 LMSAudi has officially pulled the wraps off the all-new R8 LMS at the 2015 Geneva Motor Show, where it currently on display ...
2015 Geneva Motor Show: GTA Spano
2015 Geneva Motor Show: GTA SpanoThe brand new GTA Spano has been officially presented to the public during the 2015th edition of the Geneva Motor ...
Read more automotive news


2015 Geneva Motor Show Coverage

range rover evoque cabrio 1
Kahn Flying Huntsman Live Geneva 2015 07
Mercedes GLE 450 AMG Coupe Live Geneva 2015 09
Hyundai Tuscon 48V Hybrid Live Geneva 2015 06
Brabus Rocket 900 1
Kia Cee’d GT Line 1
Hyundai ix20 facelift 1
infiniti q60 concept 1
audi r8 lms 1
gta spano 1
SEAT Leon ST Cupra - de fac Live Geneva 2015 09
Kia Picanto facelift 1

More automotive from inautonews
Volkswagen has made the public debut of the Golf GTD Variant at the 2015 Geneva Motor Show, after it has been unveiled online in late January. The brand new Volkswagen Golf GTD Variant has been officially introduced at the 2015 Geneva Motor Show. This is the newest addition to the Golf family and ...
read more
Inautonews Editors Section
Geneva Motor Show 2015 – the full car guide
Geneva Motor Show 2015 – the full car guideIt can only get bigger and better. The 85th International Motor Show in Geneva will finally make its “carsy” debut on the 3rd of March. The show ...
Test Drive: Ford Tourneo Courier 1.0 EcoBoost – Serenity
Test Drive: Ford Tourneo Courier 1.0 EcoBoost – SerenityFord has been battling losses for years in its Ford of Europe business, but judging by the model lineup of the second largest US automaker you would ...
Test Drive: Renault Megane GT Line Energy 1.2 TCe
Test Drive: Renault Megane GT Line Energy 1.2 TCe Besides the Megane GT Line diesel, tested here, Renault is also offering a petrol version of the model which is using the 1.2-liter turbo. But is ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Dodge Durango and Jeep Grand Cherokee for fuel pump problemsFiat Chrysler Automobiles (FCA) has announced a recall covering the Dodge Durango and Jeep Grand ... Recall roundup: Cadillac ATS and Chevrolet Impala for two separate issuesThe NHTSA has added two recalls from General Motors for the Cadillac ATS and the Chevrolet Impala ...
Safety Section