General Motors announced a 2-percent jump in global sales in 2014 to 9.9 million units, its second straight year of record deliveries. In a statement, GM chief executive Mary Barra said that the carmaker is making “solid progress and has good momentum." She attributed the record year to the carmaker’s customer focus; new vehicles launched in China and North America; technologies like OnStar with 4GLTE; and Opel’s recovery in Europe.
Executives at the company let out a forecast surge in operating profits this year, even as GM makes deeper investment in developing new vehicles and boosting its brands through heighten marketing.
GM chief financial officer Chuck Stevens said the enhanced profits should be boosted by an expected 3-percent surge in global sales and continued improvement in GM’s operations in Europe, as well as higher performance in North America where it sells a more profitable mix of vehicles.
GM divulged that its operating profit and margin jumped in 2014, even while its experienced some hurdles in Russia and South America.GM expects better operating profit and margins this year, even after adjusting for around $3.1 billion in expenses incurred through the third quarter of 2014 to cover costly recalls.
The carmaker is expected to post a 2014 pretax profit, excluding one-off items, that tops the $8.58 billion made in 2013. Stevens remarked that GM’s still-unannounced results for 2014 are “much better than we expected” at the start of the year. GM announced a planned investment of around $9 billion this year, much higher than the $7.5 billion that allocated in 2014.
The money will be used to prepare to a number of key vehicle launches, like the next generations of the Chevrolet Malibu and Cruze. It will also be used to better fund future Cadillac models.
Stevens remarked that new entries like the Chevy Colorado and GMC Canyon and a full year of sales for its redesigned large SUVs should lead to a more profitable mix of sales this year.