General Motors Projects Modest Profit Improvement In 2014 Amid New Launches

(RTTNews) - Automaker General Motors Co. (GM) said Wednesday that it expects profits for the full-year 2014 to rise year-over-year on the strength of key new vehicle introductions globally. GM new President Dan Ammann revealed this to investor analysts at the Deutsche Bank 2014 Global Auto Industry Conference in Detroit.

The Detroit-based company also said it sees a modest global industry growth in 2014 driven by the U.S., China and Europe.

"We continue to perform well in the two most important markets in the world, the U.S. and China. We're taking advantage of our strength in these countries to restructure and make the investments necessary to grow profitably in other parts of the world," said GM's new CEO Mary Barra in a statement.

The company noted that its expected adjusted pre-tax profit for fiscal 2014 to rise modestly on strength in the U.S. and China. The company added that improved underlying operating performance will more than offset increased restructuring expense.

However, GM projects adjusted pre-tax margins to remain flat with last year.

Further, the company said it will introduce 15 new or upgraded models in that market this year in the U.S. and 17 new or upgraded models in 2014 in China. The company had launched 18 vehicles in 2013 in the U.S.

In China, the company noted that it will produce up to five million vehicles annually with plans to open four additional plants in China through 2015.

Globally, the company plans to launch Chevrolet Silverado HD, Tahoe, Suburban, Colorado, Aveo and Sail; Cadillac ATS Coupe, CTS and Escalade; GMC Sierra HD, Yukon XL, Denali XL and Canyon in 2014 in key markets.

"In 2014, our focus will remain on winning customers by delivering new vehicles with compelling value and outstanding quality. Our ongoing work to transform our company into a formidable competitor in every market we serve will continue unabated," Ammann stated.

Ammann and Barra assumed their new positions, effective today.

Barra took over as the first woman CEO after Dan Akerson stepped down as chairman and CEO, effective today. She takes over as the new CEO after 33 years of experience at GM when she rose through a series of manufacturing, engineering, and senior staff positions.

Meanwhile, Ammann assumed the additional role of president. He will remain CFO until the release of the fiscal 2013 financial results. He joined GM in 2010 where his first assignment was to manage the GM IPO.

Akerson has been at the helm during the most troubled period of the company. He swiftly transformed the company from being majority owned by U.S. Treasury to being publicly traded and investment grade rated. He also pulled off a successful IPO in November 2010, the largest in U.S. history, and has recorded 15 consecutive quarters of profitability.

GM closed Tuesday's regular trading session at $40.02, up $0.25 on a volume of 17.39 million shares.