General Motors Company (NYSE:GM) sees itself in a position for realizing better profit in 2015, after recording a performance for 2014 that was better than it expected. The automaker, which has been plagued with expensive recalls and related compensation settlements that cost it about $2 billion last year, also cites growth in its two largest market, China and the U.S., as reasons for some optimism this year.
The company said that the forecast, announced on Wednesday, is based on “modest industry growth.” Despite its sales volume being down, General Motors Company (NYSE:GM)’s results for 2014 were “much better,” according to Chief Financial Officer Chuck Stevens. On the other hand, Chief Executive Officer Mary Barra said that 2014 is a “pivotal year.” The company sold a total of 2.94 million cars and trucks in the U.S. last year, a growth rate of 5.3 percent. Its sales in China, its largest market, surged 12 percent compared to 2013, accounting for a total of 3.5 million vehicles.
General Motors Company (NYSE:GM) is set to release results for 2014 by February, and has so far not given any figures. According to CFO Stevens, however, “2014 was a very solid year” in which the automaker was able to meet expectations despite headwinds. The company spent about $1.8 billion to $1.9 billion in recalls and compensation last year, and is still facing investigations, as well as possible litigations, arising out of the issue.
Reiterating its target of hitting 9 to 10 percent in profit margins early next decade, General Motors Company (NYSE:GM) will increase by 20 percent its spending on capital this year, for a total of $9 billion. Up to 25 percent of its vehicles will sport new designs by next year, and by the end of the decade, that figure will rise to 50 percent. The company sees a growth of 3 percent in global sales this year, for a total of about 89 million vehicles, although it accounts for competition as an obstacle to a substantial price increase. The company reported 2 percent growth in its global sales for 2014, accounting for 9.9 million cars and trucks, beating figures for 2013.
This article has been written by Nonito Guntan.