GM Expects Profits To Rise On New Vehicles In 2014

General Motors Renaissance Center, Detroit

EBIT-adjusted expected to rise modestly on strength in the U.S. and China

DETROIT, Jan. 15, 2014 /PRNewswire/ -- General Motors Co. (NYSE: GM) forecasts modest global industry growth in 2014 driven by the United States, China and Europe. Based on this outlook and the introduction of key vehicles globally, the company expects its total earnings before interest and tax (EBIT) adjusted to be modestly improved with improved underlying operating performance more than offsetting increased restructuring expense. Additionally, the company said it expects EBIT-adjusted margins will be similar to last year.

"We continue to perform well in the two most important markets in the world, the U.S. and China," said GM CEO Mary Barra. "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."

GM President Dan Ammann shared the outlook with investor analysts attending the Deutsche Bank 2014 Global Auto Industry Conference in Detroit. 

Following 18 vehicle launches in 2013 in the U.S., the company will introduce 15 new or upgraded models in that market this year. In China, GM and its joint venture partners will introduce 17 new or upgraded models in 2014. The company also announced plans to open four additional plants in China through 2015, enabling production of up to 5 million units annually.

Vehicles being introduced in key markets globally in 2014 include the Chevrolet Silverado HD, Tahoe, Suburban, Colorado, Aveo and Sail; Cadillac ATS Coupe, CTS and Escalade; GMC Sierra HD, Yukon XL, Denali XL and Canyon.

Among key accomplishments for 2013, Ammann noted the following:

• Executed successful global vehicle launches
• Received most initial quality awards among automakers in 2013 J.D. Power and Associates Initial Quality Study
• Improved revenue, EBIT-adjusted and margins
• Announced GM International Operations restructuring including plans to discontinue Chevrolet's mainstream presence in Western and Eastern Europe and transition to a national sales company inAustralia with its Holden brand
• Completed the acquisition of substantially all of Ally Financial's international operations
• Added to the S&P 500 index
• Refinanced $4.5 billion in high-cost obligations, increasing financial flexibility
• Achieved investment grade rating with Moody's Investors Service
• Monetized non-core assets including Ally and PSA ownership stakes
• The U.S. Treasury divested its ownership stake
• Announced senior leadership succession plan

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

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General Motors Sweeps North American Car/Truck Of The Year At NAIAS

DETROIT, Jan. 13, 2014 /PRNewswire-USNewswire/ -- The Chevrolet Corvette Stingray and Silverado were named the 2014 North American Car and Truck of the Year Monday morning at a news conference at the North American International Auto Show.

The winners were chosen by a jury of 49 automotive journalists from the United States and Canada.

The awards – now in their 21st year - are unique in the United States because instead of being given by a single media outlet they are awarded by a group of automotive journalists from the United States and Canadawho represent magazines, television, radio, newspapers and web sites.

The awards are designed to recognize the most outstanding new vehicles of the year. These vehicles are benchmarks in their segments based on factors including innovation, comfort, design, safety, handling, driver satisfaction and value for the dollar.

The jurors gave the Stingray 211 points; the Mazda3 got 185 and the Cadillac CTS 94.

It was the sixth car win for General Motors. The Corvette also won in 1998.

The jurors gave the Silverado 219 points; the Jeep Cherokee 174 and the Acura MDX 97.

It was the fourth truck win for General Motors. The Silverado also won in 2007.

Domestic automakers have won North American Car of the Year 12 times. Japanese automakers have won three times. European automakers have won four times. A Korean automaker (Hyundai) has won twice.

Domestic automakers have won North American Truck of the Year 14 times. Japanese automakers have won four times. European automakers have won three times.

To be eligible a vehicle must be all new or substantially changed. The jurors considered dozens of new vehicles before sending their ballots to Michelle Collins, a partner at Deloitte & Touche early in December.

The "2013 North American Car of the Year" was the Cadillac ATS.

Last year's "2013 North American Truck of the Year" was the Ram 1500 pickup.

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GM Renaissance Center Sends No Waste to Landfill

DETROIT, Dec. 10, 2013 /PRNewswire/ -- The General Motors Renaissance Center – the six-tower office complex that dominates the city's skyline and has its own ZIP code – now recycles, reuses or converts all its daily waste to energy, diverting 5 million pounds of trash annually from landfill. That is the equivalent of 200,000 full garbage bags.

The drive to make the Renaissance Center, home of GM's Global Headquarters, landfill-free took more than two years. The process included coordination with GM employees, recycling partners, business tenants and their employees, the Detroit Marriott at the Renaissance Center and property management company, CBRE.

"This is a significant achievement considering all the waste from workers, shoppers, diners and hotel guests — ranging from half-eaten hamburgers to used mattresses — that will not end up in a landfill," saidMike Robinson, GM vice president of Sustainability and Global Regulatory Affairs. "By working together, we reduce our footprint while helping build a greener economy and a greener Detroit."

The Renaissance Center is the most complex among GM's 110 landfill-free sites to reach the milestone. It's the company's only facility open to the public. Covering 5.5 million square feet, the building houses the Western Hemisphere's tallest all-hotel skyscraper, 11 other businesses, 20 restaurants and 27 retailers. It accommodates 12,000 office workers and 3,000 visitors daily.

The journey toward landfill-free began with a dumpster dive, searching through trash to identify reuse and recycling opportunities. Combining that insight with the building's historical waste data, GM teamed with all the business tenants, environmental staffs and CBRE to engage people in increasing paper, plastic, and battery recycling. Educating how and where to recycle, as well as making it convenient to do so, changed behavior.

A number of partners make landfill-free possible. GM worked closely with Waste Management, an international leader in recycling, to coordinate its needs with partners around the region to meet the goal. Royal Oak Recycling bales and ships paper to mills across the country where it is turned into items like cereal boxes and tissue paper. A Detroit nonprofit receives all returnable bottles and cans as a donation for youth outreach programs. Waste Management's Detroit Recycling Center recycles cardboard and plastic, and Veolia Environmental Services ensures batteries are properly recycled.

GM's abundance of recyclable waste contributed to the economic growth of a new business called Hamtramck Recycling. The company sorts the Renaissance Center's mixed packaging material and odd-shaped and bulky items. The company's bulk shredder helps GM and other companies in Southeast Michigan manage their waste streams and increase recycling.

The Renaissance Center now recycles 49 percent of its total waste, an improvement of 127 percent since the drive to landfill-free began in 2011. The remaining waste, including food scraps and used containers, is converted to energy through a facility located a few blocks away; creating renewable energy that powers other Detroit businesses.

Even with auto industry leadership in landfill-free facilities, GM and its partners are continually seeking better ways to manage waste.

GM published a downloadable blueprint , "The Business Case for Zero Waste", to help companies of all sizes and industries reduce waste and create efficiencies. For more information on the company'senvironmental commitment, visit its sustainability report and environmental blog.

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General Motors Names First Female CEO

Mary T. Barra

DETROIT – General Motors today announced that Dan Akerson, who guided today’s GM to record profits and dramatic improvement in vehicle quality while closing the chapter on government ownership in the company, will step down as chairman and CEO on Jan. 15, 2014.

Mary Barra, 51, executive vice president, Global Product Development, Purchasing and Supply Chain, was elected by the Board of Directors to become the next CEO of the company.  Barra will also join the GM Board. 

Akerson, 65, pulled ahead his succession plan by several months after his wife was recently diagnosed with an advanced stage of cancer.

The Board also named Theodore (Tim) Solso to succeed Akerson as Chairman.  Solso, 66, is the former chairman and CEO of Cummins, Inc., and has been a member of the GM Board since June 2012.

“I will leave with great satisfaction in what we have accomplished, great optimism over what is ahead and great pride that we are restoring General Motors as America’s standard bearer in the global auto industry,”  Akerson said in a message to employees.

With 33 years of experience at GM, Barra has risen through a series of manufacturing, engineering, and senior staff positions.  She is a leader in the company’s ongoing turnaround, revitalizing GM’s product development process resulting in the launch of critically acclaimed new products while delivering record product quality ratings and higher customer satisfaction.

“With an amazing portfolio of cars and trucks and the strongest financial performance in our recent history, this is an exciting time at today’s GM,” said Barra. “I’m honored to lead the best team in the business and to keep our momentum at full speed.”

Dan Ammann, 41, executive vice president and chief financial officer, was named company president and will assume responsibility for managing the company’s regional operations around the world.  The global Chevrolet and Cadillac brand organizations and GM Financial will also report to Ammann.

Ammann joined GM in 2010 where his first assignment was to manage GM’s initial public offering. As CFO, he has led a transformation of GM’s finance operations into a world-class organization.  He also led the strategy to rebuild the company’s captive finance capability through the successful establishment and growth of GM Financial.

“We have a significant opportunity to further integrate and optimize our operations to deliver even better results,” said Ammann.  “While we have made good progress, we still have much work ahead of us to realize GM’s full potential.”

Ammann will retain CFO responsibilities at least through the release of the company’s fourth quarter and full-year 2013 results in early February 2014.  His replacement as CFO will be named later.

Mark Reuss, 50, executive vice president and president, North America, will replace Barra as executive vice president, Global Product Development, Purchasing and Supply Chain.  Under Reuss’ watch, GM’s North America region has produced consistent profits and improved margins during a product renaissance that includes the launch of award-winning cars and trucks such as the Cadillac ATS, Chevrolet Corvette, Impala and Silverado pickup.

“The driver’s seat of designing and engineering the strongest product line up in GM’s history is the best seat to have,” said Reuss.  “We’re going to keep the pedal down on GM’s product resurgence and keep winning new customers.”

Alan Batey, currently senior vice president, Global Chevrolet and U.S. Sales and Marketing, will replace Reuss and is named Executive Vice President and President, North America.  Batey, 50, joined GM’s Vauxhall operation in 1979 and held several sales, service and marketing positions around the world.  In his current position, he has developed the Chevrolet brand’s Find New Roads advertising campaign and has overseen a sweeping upgrade of retail sales and service operations at hundreds of U.S. dealerships.

“North America is the foundation of the GM turnaround story and I’m honored to help continue what Mark started,” said Batey.  “We remain committed to delivering the world’s best retail experience to match the world’s best cars and trucks.”

The company also announced that Steve Girsky, 51, vice chairman, Corporate Strategy, Business Development and Global Product Planning, will move to a senior advisor role until leaving the company in April 2014.  He will remain on the GM Board of Directors.

Girsky led GM’s turnaround plan for Europe that has put that region’s operations back on a path to profitability.  He has also put GM’s OnStar unit at the forefront of in-vehicle connectivity and helped create GM Ventures to speed the commercialization of new technologies in GM vehicles.

“I share Dan’s pride for what the company has accomplished and his sense of optimism for a bright future,” said Girsky.  “This team is united in its commitment to building on the foundation that we have established.”

Under Akerson’s leadership, GM made swift progress as the company transformed from being majority owned by U.S. Treasury to being publicly traded and investment grade rated.

“My goals as CEO were to put the customer at the center of every decision we make, to position GM for long term success and to make GM a company that America can be proud of again,” Akerson said.  “We are well down that path, and I’m certain that our new team will keep us moving in that direction.”

Akerson was named GM Chairman and CEO on September 1, 2010.  He joined GM in 2009 as a member of its Board of Directors.  Since the company’s November 2010 Initial Public Offering, GM has recorded 15 consecutive quarters of profitability, has earned this year the best overall initial vehicle quality scores of any auto manufacturer, and has re-invested nearly $9 billion and created or retained more than 25,000 jobs at its U.S plants.

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General Motors Nearly Triples Size of Battery Laboratory

GM Battery Laboratory
(photo by John Martin for GM)

WARREN, Mich. – General Motors has nearly tripled the size of its Global Battery Systems Laboratory, cementing the lab’s stature as the largest battery lab in North America owned and operated by a major auto manufacturer.

The latest addition of 50,000 square feet brings to 85,000 the total square footage of the lab. The expansion made possible the increase in the number of pack-level test channels from 64 to 112 and cell-level test channels from 96 to120.  

“In the past four years, the competitive landscape in the electrification space has grown exponentially. This has required us to raise our game and draw a new line in the sand,” said Doug Parks, GM vice president, global product programs. “To maintain our battery leadership, this additional real estate is filled with new capability that will help us improve speed to market for our next generation of battery systems and help us improve the value equation to our customers around the world.”

GM Tech Center
Warren, Michigan

GM’s Global Battery Systems Lab has been responsible for testing and validating both battery cells and packs for all of GM’s vehicle electrification systems, including the battery systems for theChevrolet Volt, Cadillac ELR, Chevrolet Spark EV and GM’s eAssist light electrification system. 

The additional capabilities of the lab expansion include:

• dedicated equipment for future vehicle battery system development such as charger development and testing, cord set testing and competitive benchmarking;
• building prototype battery packs for vehicle development programs; and,
• the ability to act as the hub for validation and testing of all battery systems designed for use in future GM vehicles around the world.

The lab will also play a critical role in assuring GM’s current generation of electric vehicles maintain their battery leadership position. Teams will validate and test updates to existing chemistries and system designs to make the most of performance and reduce cost. For example, updates were made to the battery system in 2013 Chevrolet Volt that added three miles of EV range. 

“GM is committed to vehicle electrification and our products in this area must continue to excite customers. A critical part of this plan is to deliver safe, reliable and affordable energy storage systems,” said Larry Nitz, GM’s executive director of global electrification engineering. “The new capabilities of this lab will enhance our engineers’ ability to design, develop, process and validate class-leading products to meet the needs of our growing customer base."

In addition to the lab in Michigan, GM also operates battery labs in Shanghai, China, and Mainz-Kastel, Germany, which are tasked with testing and validation of battery cells, packs, and advanced battery system development. Teams at the China, Germany and Michigan labs work collectively to test battery systems around the clock to reduce validation time.

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Restore The Roar: New Car Sales Should Be Up More Than 14 Percent

August 2013 New Car Sales Expected to Be Up 14.4 Percent According to TrueCar; August 2013 SAAR at 15.75M, Highest August SAAR since 2007

TrueCar.com, company that sources, compiles, and analyzes car-buying information, has released its August 2013 sales and incentives forecast. It shows a 14.4 percent increase in new car sales during the month of August.

• For August 2013, new light vehicle sales in the U.S. (including fleet) is expected to be 1,464,214 units, up 14.4 percent from August 2012 and up 11.8% percent from July 2013 (on an unadjusted basis).
• The August 2013 forecast translates into a Seasonally Adjusted Annualized Rate ("SAAR") of 15.75 million new car sales, down less than one percent from July 2013 and up nine percent overAugust 2012.
• Retail sales are up 10.5 percent compared to August 2012 and up 11.7 percent from July 2013.
• Fleet and rental sales are expected to make up 15.0 percent of total industry sales in August 2013.
• The industry average incentive spending per unit will be approximately $2,477 in August 2013, which represents an increase of 0.4 percent from August 2012 and is down 2.6 percent from July 2013. Incentives are at their lowest percentage since January of this year.
• Used car sales* are estimated to be 3,451,179.  The ratio of new to used is estimated to be 1: 3 for August 2013.

Individual Manufacturer highlights:

• General Motors is enjoying its highest sales since Sept. 2008
• Honda's sales are its highest since August 2009
• Chrysler enjoyed its second highest sales month this year

"New vehicle sales defied their typical strong correlation with Wall Street in August and continued to post a healthy increase despite the lackluster performance in financial markets," said Jesse Toprak, senior analyst for TrueCar.com. "Small SUVs became the fastest growing segment this month, with this very functional and affordable vehicle category now making up 15.5% of all sales, up from 13.5% from a year ago."

Forecasts for the top eight manufacturers for August 2013:

Unit Sales
Manufacturer	August 2013 Forecast	% Change vs. July 2013	% Change vs. Aug. 2012
Chrysler	169,269	22.0%	14.5%
Ford	217,173	15.1%	12.6%
GM	265,369	13.4%	10.3%
Honda	156,371	10.6%	19.1%
Hyundai/Kia	121,462	5.6%	9.3%
Nissan	118,247	8.4%	20.0%
Toyota	215,413	11.4%	14.3%
Volkswagen Group	59,710	13.4%	7.5%
Industry	1,464,214	11.8%	14.4%

Market Share
Manufacturer	August 2013 Forecast	Jul-13	Aug-12
Chrysler	11.6%	10.6%	11.5%
Ford	14.8%	14.4%	15.1%
GM	18.1%	17.9%	18.8%
Honda	10.7%	10.8%	10.3%
Hyundai/Kia	8.3%	8.8%	8.7%
Nissan	8.1%	8.3%	7.7%
Toyota	14.7%	14.8%	14.7%
Volkswagen Group	4.1%	4.0%	4.3%

Incentive Spending
Manufacturer	August 2013 Incentives	% Changevs. July 2013	% Changevs. August 2012	Total Spending
Chrysler	$ 2,987	-0.7%	-8.8%	$  505,588,038
Ford	$ 2,949	-1.2%	12.1%	$  640,336,893
GM	$ 3,469	-3.4%	12.1%	$  920,612,117
Honda	$ 1,498	-15.2%	-38.1%	$  234,287,982
Hyundai/Kia	$ 1,584	-2.2%	33.4%	$  192,433,604
Nissan	$ 2,301	-10.1%	-16.7%	$  272,083,915
Toyota	$ 1,863	4.6%	-0.5%	$  401,334,151
Volkswagen Group	$ 2,461	-3.3%	17.4%	$  146,955,118
Industry	$ 2,477	-2.6%	0.4%	$ 3,622,340,527

"Despite the push to sell down older models, incentive spending has declined for its second consecutive month," said Kristen Andersson, analyst at TrueCar.com. "Chrysler hit its lowest level of incentive spending since May 2011 while also seeing double digit sales increases, as their strong product lineup continues to resonate with buyers. Honda has also slashed its incentive spending, which is down almost 40 percent from last year." 

TrueCar.com bases its forecast on actual transaction data. The transaction data based forecast is refined by other current and historical factors that impact vehicle sales, including  sales, inventory, incentives, fuel prices, and macro economic data (major stock market indexes, consumer confidence, new home starts and CPI).  TrueCar.com does not adjust for selling days in year-over-year percentage change calculations.

*Used car sales figures include sales from franchise dealerships, independent dealerships and private party sales

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