GM Says Profits Gained in US, China Will Help Restructure Other Global Markets
General Motors announced that it expects total EBIT earnings will improve "modestly" in 2014 thanks to its strong performance in the U.S., China, and Europe. This success will help offset GM's struggles in other overseas markets. “We continue to perform well in the two most important markets in the world, the U.S. and China,” said Mary Barra, who took over as GM's CEO starting January 15, 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.” The automaker is continuing the aggressive rollout of new models in its strong countries. Fifteen new or redesigned models are expected to reach the U.S. this year. China will receive 17 new products from GM and its joint ventures, and four new plants will be built there through 2015. But not everyone is happy about GM's profit forecast. Barclays analyst Brian Johnson, cited by Bloomberg News, said the forecast "will likely be viewed as a disappointment to most investors." This is because, he says, restructuring costs for these new markets are higher than the $900 million Barclays had previously estimated. Shares of GM were down 1.6 percent to $39.38 in New York when the news first hit. Source: General Motors, Bloomberg Businessweek
Ford will be handing out free model kits while supplies last at the NAIAS in Detriot.