GM General Motors Company

MILFORD, Mich.—General Motors Co.'s product development chief doesn't expect a meaningful shift in the cost of meeting diesel emissions regulations following Volkswagen AG's current emissions crisis.

Mark Reuss, speaking to reporters before the auto maker's annual investor conference in suburban Detroit, said the company will meet European emission standards even if regulators toughen up on enforcement. He also said the company currently isn't forecasting a significant increase in the cost of producing diesel engines and that its technology is in compliance.

The comments come weeks into an emissions scandal that has engulfed GM's large German rival. Volkswagen for years used software in its so-called clean diesel cars to cheat on U.S. emissions tests, and that practice has cost top leaders their jobs, prompted a series of investigations around the world and will likely lead to big fines and other unexpected expenses.

GM, meanwhile, says it is on pace to meet the targets it laid out a year ago, Chief Executive Mary Barra told reporters. Those targets include returning European operations to profit next year, reaching a 10% operating profit in North America in 2016, and hitting a companywide profit margin of 9% to 10% by early next decade.

GM also plans to double earnings at the GM Financial lending arm in 2018 compared with 2014 levels. In 2015, the company expects a roughly 6.8% operating margin for the company and about $155 billion in revenue.

GM said it now plans for its annual free-cash-flow generation to outpace operating earnings growth. That would enable continued returns to shareholders, which has been a concern of investors of late.

Write to John D. Stoll at john.stoll@wsj.com

Access Investor Kit for "Volkswagen AG"

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664039

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 01, 2015 10:05 ET (14:05 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.