Even as the three Detroit automakers have largely under performed the stock gains across the auto industry in the past year or so, General Motors chief executive officer Mary Barra believes the situation for the largest US automaker is going to improve.
General Motors recently announced it had reached the production quota of 500 million cars since the company was established back in 1908 and the top official of the automaker also took the time to address some of the woes that bewilder the group after it went through a bitter bankruptcy procedure back in 2009. One of those issues has to do with the firm’s ability to increase investor confidence once it shed government control at the end of last year – Barra said she was utterly confident the value of having GM stock will prove in time. The largest US automaker has dropped almost 9 percent since back in March it announced a strategy to deliver increased investor revenue through a $5 billion share buyback procedure. According to analysts and industry experts, the lower investor confidence in the Detroit automakers is directly linked to the general opinion that the US auto market is approaching another peak cycle. For the largest carmaker the woes are also linked to the profit generators – North America and China, where slower sales have started to affect earnings margins as well.
As far as GM is concerned, the automaker plans to address the concerns by investing with long-term prospects in view. “This is a business that is not made on a quarter-by-quarter basis,” commented Barra. “We just need to continue to have strong performance, which we did in the first quarter, quarter after quarter, year after year, focus on the right products, the right technology, quality and our customers.” When it comes to US investments, GM plans to support continued growth by pouring $5.4 billion during the next three years towards local assembly units.