GM CEO Mary Barra said she believes that all of the fundamentals that brought profits to GM in 2017 are in place to repeat in 2018.
General Motors Co. expects strong earnings in 2018, as it builds on an expected record 2017 diluted-adjusted EPS as well as previous record earnings in 2016 and 2015.
GM’s bullish forecast comes on the heels of a bullish prediction for 2018 from Fiat Chrysler Automobiles N.V. Chief Sergio Marchionne, who told reporters at the Detroit Auto Show that he expected upward of $9 billion in operating profits from FCA for the full-year even as it falls short of the sales targets laid out in four-year plan set out 2014 when it predicted sales of 7 million units.
The company’s “product cadence” will help FCA offset any potential weakening in the economic outlook, added Marchionne, who noted the company was bringing out a new version of the Jeep Cherokee and brand-new Jeep Wrangler as well as the new Ram 1500 pickup truck.
Ford is expected to lay out its forecast for 2018 during a presentation to analysts later this week.
GM President Dan Amman expects 2018 to be a virtual repeat of 2017 financially, meaning big profits.
GM forecasts its 2018 results to be largely in line with expected 2017 results, benefiting from continued strength in North America and China, improvement in South America, additional growth in its adjacent businesses, including GM Financial, and continued cost efficiencies.
(To see a little more about what FCA’s Marchionne had to say about 2018, Click Here.)
“GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable,” GM Chairman and CEO Mary Barra said. “We are positioned for another strong year in 2018 and an even better one in 2019.”
In 2018, GM will continue its product momentum with the introduction of its next-generation full-size trucks later in the year.
“Reshaping the company over the last few years has allowed us to deploy resources and capital to higher-return opportunities including our next-generation trucks and establishing leadership in the future of mobility,” GM President Dan Ammann said. “The all-new full-size truck family that launches this year will generate very strong returns for years to come.”
(Click Here to see more about Mary Barra’s expectations for profitable EVs.)
The 2019 Chevrolet Silverado full-size pickup truck will feature eight distinct models with a variety of trim levels and six engine and transmission combinations to meet the needs of every truck customer.
The all-new GMC Sierra will be revealed soon with more differentiation than ever before to appeal to premium truck buyers. These important vehicles will round out the widest-ranging truck portfolio in the industry, continuing the industry’s only three-truck strategy.
According to GM Executive Vice President and CFO Chuck Stevens, the company’s ongoing focus on its most compelling business opportunities continues to deliver results.
(Click Here for details about GM wanting approval for driverless robo-cabs in 2019.)
“Our core business is anchored by very strong profit franchises. With inventories right-sized and strong product momentum, we expect to generate another strong performance in 2018,” Stevens said.