16 November 2018

US, China growth to offset GM costs elsewhere, Reuters says

Modest growth in the United States and China this year would help General Motors Co. fund about US$1.1 billion in restructuring costs in other regions such as Europe and Australia, Reuters reported Thursday, citing the carmaker’s new management team. Chief executive Mary Barra and president Dan Ammann, who took the reins of the company on Wednesday, expect a slight increase in pre-tax profits this year, but said margins are likely to remain flat until 2015. The company plans to open four new plants in China through 2015, increasing annual production capacity to five million vehicles, to keep up with chief rival Volkswagen A.G., the report said. The automaker produced 3.3 million vehicles in North America in 2013, it added.

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