GM delivers record profits

General Motor today announced record revenues of $US10.8 billion for 2015 from total global sales of 9.8 million cars and light trucks.

Earnings per share (EPS) after special adjustments reached $US5.02, a 65 per cent increase on 2014.

Improving its market share in North America and continued strong sales in China were not enough to move GM past Toyota and Volkswagen Group as world’s largest car-maker.

Europe and South America regions posted net losses against strong sales and earnings by GM North America and GM International Operations (includes China and Australia markets).

Wall Street, however, was unimpressed and the GM share price dipped downward by as much as four percent on the day. One reason for Wall Street’s coldness is the fact that GM in 2015 spent $US3.5 billion to buy back common shares in order to hold a slipping share price.

The collapse of Russia financially as a rapidly growing market and GM’s largest safety recall in history centering on a faulty ignition switch were significant red marks in 2014.

Holden continues to raise questions about GM’s global product strategy and commitment to right-hand-drive markets as the company in Australia transitions to full-range importer.

So far GM has overlooked developing RHD variants of significant new products such as the pure-electric Chevy Bolt, all-new mid-size Malibu sedan and the new US-built Colorado/Canyon pick-up.

How GM will expand Cadillac into a true premium global brand and its introduction into RHD markets remains a major question.

GM President and CEO Mary Barra did highlight GM’s future focus on a rapidly changing industry. She mentioned that GM believes autonomous driving technology, car-sharing programs such as Lyft and electrification either through hybrid or pure EV technology will create growth opportunities for the company.

Until then, GM will depend heavily on sales in North America and China to better earnings for shareholders this year. GM is predicting an adjusted EPS of between $US5.25 and $US5.75 in 2016.