GM predicts pretax earnings, profit margin rise in 2015

SHARE GM predicts pretax earnings, profit margin rise in 2015
General_Motors_Annual_Mee.2.jpg

General Motors CEO Mary Barra | AP file photo

DETROIT — General Motors says it expects pretax earnings and profit margins to increase this year over last, after adjusting last year for recall costs.

The company also predicts improved automotive results in all of its regions. It gave no specific numbers. GM is scheduled to release its fourth-quarter and 2014 earnings on Feb. 4.

GM also reiterated 2016 financial targets of 10 percent pretax profit margins in North America and a return to profitability in Europe. It also expects to maintain strong profit margins in China. Profit margin is the percentage of revenue that a company gets to keep.

The company expects 9 percent to 10 percent profit margins overall by early next decade. GM made the predictions at a Deutsche Bank conference for analysts in Detroit.

GM sets global sales record, but is behind Volkswagen

GM issued 84 recalls last year covering more than 30 million vehicles in North America, costing the company more than $2.8 billion. The spate of recalls began with faulty small-car ignition switches that are responsible for at least 45 deaths and 68 injuries. GM acknowledged knowing about the bad switches for more than a decade, yet it didn’t start recalling the cars until early 2014.

CEO Mary Barra told the conference that the company didn’t do everything perfectly on the recalls, but said it now has permanent systems, processes and behavior changes in place to make sure it doesn’t happen again.

GM plans to reach its goals by leading in product and technology, expanding the Chevrolet and Cadillac brands globally and continuing to grow in China.

Company President Dan Ammann told the conference the company plans numerous new products during the next couple of years, including top-selling models such as the Chevrolet Cruze compact car, Chevy Malibu midsize car and Chevrolet Equinox small crossover SUV.

The company has 27 new models coming globally this year, and 38 in each of 2016 and 2017, he said.

“All major-volume entries get all-new models the next couple of years,” Ammann said.

BY TOM KRISHER, AP Auto Writer

The Latest
Anthony Demirov is just a sophomore, but he has the scoring ability to carry his team for a crucial quarter and the confidence and resolve to knock down free throws with the game on the line.
Critics tell us that payouts now in the hundreds of millions are a sign that the city and police department are not serious enough about reform. If they were, Chicagoans would see real accountability, better policies and better outcomes.
According to coach Billy Donovan, Ball still is dealing with pain in his surgically repaired left knee. There have been no setbacks, but the concern continues.
President Biden hosts his first state dinner on Thursday, for President Emmanuel Macron and his wife, Brigitte. The Sun-Times has the delicious details.
The Packers quarterback expects to hear it from Bears fans again Sunday at Soldier Field. “I’ve been hearing it from fans for 15 years down there. So I don’t expect anything to be different,” Rodgers said. “I have a lot of respect for the city of Chicago and the sports fans.”