GM Expects Profits
to Grow in 2013 on New Vehicles
Dan
Ammann, GM senior vice president and chief financial officer
DETROIT – General
Motors Co. forecasts modest global industry growth in 2013 driven by the
United States and China, while Europe is expected to experience further
contraction. Based on this outlook and a strong cadence of new vehicle
introductions, the company expects its global profitability to rise
modestly in 2013 on an earnings before interest and tax (EBIT) adjusted
basis, with improvements anticipated from each region.
The outlook was shared
with investment analysts attending the Deutsche Bank 2013 Global Auto
Industry Conference in Detroit.
“Our portfolio of new, world-class vehicles puts us on a strong footing
to grow profitably,” said Dan Ammann, GM senior vice president and chief
financial officer. “We’re launching more vehicles globally than at any
time in our history and some of our most important models are targeting
the two largest markets in the world – the U.S. and China.”
The U.S. product renaissance, which
started in 2012, will see 70 percent of GM’s portfolio completely
refreshed by the end of 2013. In 2011, GM and its joint venture partners
in China began the rollout of more than 60 new or upgraded models that
will hit the market there through 2015.
Some of the key vehicles launching around
the world include the Chevrolet Silverado and GMC Sierra full-size
pickups, Chevrolet Impala and Corvette Stingray, and Cadillac CTS in
North America; the Opel Adam, Cascada and Mokka, and Chevrolet Trax in
Europe; the Chevrolet Onix and Spin in South America; and the Cadillac
XTS and Chevrolet Sail in China.
2012: Fortress Balance Sheet Reinforced,
Challenges Met, Progress Made
Ammann noted that 2012 was a year in which
the company improved its competitiveness, positioning it for sustained,
positive growth.
■GM South America results – returned
region to profitability
■GM Europe action – outlined plan to break
even by mid-decade
■Continued strong liquidity – total
liquidity of $37.5 billion (Q3, 2012)
■Capital expenditures increased – total of
approximately $8 billion for 2012
■Ownership by U.S. Treasury – overhang
addressed and capital returned
■GM Financial expanded – acquisition of
Ally international operations to help close financing gap with coverage
in 80 percent of markets where GM competes
“We’ve developed a fortress balance sheet,
our brands are getting stronger, and we’ve been disciplined in running
our business,” Ammann said. “We’re now positioned to take a
‘straight-line’ investment approach to vehicle development so that we
can sustain profitability throughout the business cycle.”
