MILFORD, Mich., Oct. 1, 2014 /PRNewswire/ -- General Motors
Co. (NYSE: GM) CEO Mary Barra and
her executive leadership team outlined the company's
customer-focused strategic plan to become the most valued
automotive company at a conference for investors and financial
analysts today at the company's Milford Proving Ground.
"In the nine months that this leadership team has been together,
we have spent a significant amount of time setting our goals for
the future of GM and developing a specific action plan," Barra
said. "Our strategic plan is a pathway to earn customers for life
and create significant shareholder value in the process. Every
chance to connect with a customer is an opportunity to build a
stronger relationship."
GM's strategic plan includes several major initiatives that the
company anticipates will help it achieve 9- to 10-percent margins
on an EBIT-adjusted basis by early next decade.
- Lead in Product and Technology: In 2015, about 27
percent of GM's global sales volume is expected to come from
products new or refreshed within 18 months. That figure is
expected to rise to 38 percent in 2016 and 2017, and reach 47
percent in 2019.
During the same time frame, GM plans to execute the world's
largest automotive deployment of 4G LTE high-speed mobile
broadband, introduce vehicle-to-vehicle connectivity in the 2017
Cadillac CTS and launch a highly automated driving technology
currently called Super Cruise, which allows for extended periods of
hands-free driving on highways.
GM has also developed an innovative Mixed Material Body
Structure that uses GM-patented welding technology and a
combination of steel and aluminum stampings, castings and
extrusions to deliver designs that are lightweight, use
20 percent fewer parts, have class-leading torsional stiffness
and exhibit superior noise and vibration characteristics.
- Grow Cadillac: GM is establishing its flagship brand as
a separate business unit headquartered in New York City to pursue growth
opportunities in the luxury market with more focus and
clarity. Cadillac expects to introduce four new vehicles in
North America in 2015, including
the recently announced CT6. In addition, Cadillac plans to
introduce nine new models in the next five years in China, which is expected to become the world's
largest luxury car market later this decade.
- Continue Growing in China: GM's joint ventures in China are planning to invest $14 billion
from 2014 through 2018 to open five new vehicle- manufacturing
plants and support sales of just under 5 million vehicles annually.
In the same time frame, GM expects to launch 60 new or refreshed
vehicles, including nine new sport utility vehicles.
- Continue Growing GM Financial: GM Financial, which has
seen its earning assets grow from $8.7
billion in 2010 to $37 billion
today, continues to invest to support the sale of new GM cars,
trucks and crossovers around the world. GM Financial has sharply
increased the number of GM customers it serves in the United States, Canada, South
America and Europe. Later
this year, GM Financial expects to enter the growing Chinese
market.
- Deliver Core Operating Efficiencies: GM's strategy to
improve relationships with suppliers, derive more global volume
from fewer vehicle architectures and lower enterprise costs for
material and logistics is expected to deliver significantly better
variable margins on upcoming high-volume product launches,
including the Opel/Vauxhall Corsa and Astra in Europe, and the Chevrolet Cruze and Malibu in
North America. By 2020, the
company expects that about 99 percent of global production will be
on core architectures.
Mid-decade Financial Targets
During the meeting, GM
also reaffirmed the company's previously announced near-term
financial targets:
- In North America, the company
expects to achieve EBIT-adjusted margins of 10 percent in
2016.
- In Europe, the company expects
to return to profitability in 2016.
- In China, the company expects
that its joint ventures will maintain net income margins in the 9-
to 10-percent range.
- In South America, the
company's core operations continue to improve as a result of recent
product launches and material and logistics
optimization.
- GM continues to address challenges in its international
operations outside of China,
including brand strategy, cost structure and sourcing to return to
consistent profitability.
GM intends to return excess cash flow to stockholders primarily
through strong and growing dividends based on sustained
improvements in the company's underlying financial performance.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners
produce vehicles in 30 countries, and the company has leadership
positions in the world's largest and fastest-growing automotive
markets. GM, its subsidiaries and joint venture entities sell
vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden,
Jiefang, Opel, Vauxhall and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global leader in
vehicle safety, security and information services, can be found at
http://www.gm.com.
Forward-Looking Statements
In this press release and in related comments by our management,
our use of the words "plans," "expect," "anticipate," "possible,"
"potential," "target," "believe," "commit," "intend," "continue,"
"may," "would," "could," "should," "project," "appears,"
"projected," "positioned," "outlook" or similar expressions is
intended to identify forward-looking statements that represent our
current judgment about possible future events. We believe these
judgments are reasonable, but these statements are not guarantees
of any events or financial results, and our actual results may
differ materially due to a variety of important factors. Among
other items, such factors may include: our ability to realize
production efficiencies and to achieve reductions in costs as a
result of our restructuring initiatives and labor modifications;
our ability to maintain quality control over our vehicles and avoid
material vehicle recalls and the cost and effect on our reputation
of product recalls; our ability to maintain adequate financing
sources, including as required to fund our planned significant
investment in new technology; our ability to successfully integrate
Ally Financial's International Operations; the ability of our
suppliers to timely deliver parts, components and systems; our
ability to realize successful vehicle applications of new
technology; overall strength and stability of our markets,
particularly outside of North
America and China; costs
and risks associated with litigation and government investigations
including those related to our recent recalls; our ability to
remain competitive in Korea and our ability to continue to attract
new customers, particularly for our new products. GM's most recent
annual report on Form 10-K and quarterly report on Form 10-Q
provides information about these and other factors, which we may
revise or supplement in future reports to the SEC.
SOURCE General Motors