General Motors gave a positive FY 2018 earnings direction, this meant that the share prices rose by as much as much as 8.15 percent by Friday morning since the opening bell rang. The vehicle manufacturer said: “We are expecting the fiscal 2018 earnings to exceed the previous expectations and that 2019 could be even better”.
The Chief Executive Officer of General Motors, Ms. Mary Barra told the firm that they were expecting the earning for the fiscal year 2018 to be around 5.80-6.20 US dollar for every share while the adjusted automotive free cash flow of around 4 Billion US dollars.
The CEO of GM, Ms. Barra told CNBC’s Phil LeBeau: “From a 2018 perspective, it is not only a focus on really capitalizing on the new trucks we have out there, the light-duty trucks, but also the focus on cost reduction so it was across the board. Every element of the company,”
Barra also discussed numerous strategic moves in an interview with CNBC. These moves are going to aid the car manufacturer in saving over 6 Billion US Dollars within just 2 years.
Barra discussed the changing preferences of business and customers as: “We have been transparent with the [United Auto Workers union], helping them and making sure they understand the business and that customer’ preferences are changing,”
Barra told LeBeau: “When you step back and look at China, we have been there for 20 years, we have had tremendous success, we have very strong brands,”
Ms. Barra went on to add: “We think that the trade talks that are going on right now are very constructive, the fact they have extended this round to have even more discussion, the next is already scheduled, and we know there is discussion of durable goods stimulus in country that we think will apply to autos.”
According to Barra “Cadillac will become GM’s lead electric vehicle brand”. The firm is now expecting total revenue to be more over 17 million for the year 2019 and over 27 million in sales for China. She also told that: “China annual auto sales could climb to 30 million”.