Boston, MA 01/17/2013 (wallstreetpr) – The biggest announcement that came from the top U.S. automaker General Motors Company (NYSE:GM) after Mary Barra eventually become the chief executive was that the company expects its profits to grow modestly this year. The company has lined-up several aggressive plans this year which are expected to impact its profit. These plans include launch of new vehicles in the U.S. and China.
General Motors plans to roll out 16 new or upgraded vehicles in the U.S. and about 17 new or refreshed vehicles in China. Late last year the company took a move which served to make China sort of an autonomous market by taking its international headquarters out of Beijing to Singapore.
Executives at GM are looking at China as an important auto market in the world. Investors can expect the company to increase its global presence given that the new CEO has vast understanding of the opportunities in the international market having been the head of global operations.
Adjustments
General Motors Company (NYSE:GM) has announced that while 2014 will be a busy year give the several vehicle launches, the company is still looking to deliver improved pretax profits compared to 2013. Basically the company expects to continue with its cost-cutting exercise of which it plans to spend about $1.1 billion in these efforts.
As part of reorganization towards the attainment of efficiency, the company has announced pulling its Chevrolet brand out of Europe and shutting plants in Australia. Concerning Chevrolet in Europe the company noted that the brand was not offering the competitive advantage that it needs in the region. And regarding Australian operations, General Motors announced that strong Australian currency and economic environmental was not favorable to its business in the country.
With these adjustments, General Motors Company (NYSE:GM) is looking to boost its market share in the global market where growth is projected to go up 2 percent to hit 85 million vehicles by end of 2014. The company managed a 4 percent sales growth last year, a performance helped by good tiding in China where sales topped 3 million.
Investment return
General Motors Company (NYSE:GM) has announced reinstatement of quarterly dividend after repaying its bailout debt to the government. The company will now start paying $0.30 per share every quarter starting March.
