General Motors targets stronger profits for 2016 - Insane Visions

General Motors targets stronger profits for 2016

General Motors, the no. 1 U.S. automaker has big plans for the next years, targeting an impressive growth, by overhauling the product line. According to the Chicago Tribune, Mary Barra, the company’s Chief Executive Officer told investors that the plans include a total replacement of the global product line in 2016, while 39% of the projected sales volume for the next year is represented by new car models.

Self-driving cars are one of the main priorities

One of the upcoming projects, which received special attention, is the new Cadillac CT6, with autonomous driving technology. Barra added that GM is currently working to be the industry’s leader when it comes to offering options like the Super Cruise from the CT6, so drivers can enjoy hands-free driving.

Even more, General Motors has been investing a lot in autonomous or self-driving cars lately. Next year, they’re expected to have a whole fleet of 2017 Chevrolet Volts for transporting employees around the campus, while a citywide car sharing service is also planned.

Mary Barra GM CEO

Apparently, General Motors is also targeting an increase in earnings per share, hoping to reach $5.50 before items. Last year, the automotive company managed to reach $3.05, while analysts from Wall Street are hinting to $4.50 per share in 2015.  As for the scheduled investments, Barra is expected to spend about $5.5 billion in the next three years, the whole sum representing purchasing, manufacturing and administrative expenses.

Is GM really on the right path?

According to the same source, General Motors is currently poised for growth by pushing into developing markets, like India and China, as well as in established markets, where they want to introduce new products and technologies.

Since Mary Barra was appointed as CEO, the company’s stock has fallen about 25 percent, so her aim is to prove investors the GM can actually enter a new phase and generate even bigger profits.