GM sees strong ’19 earnings, says Caddy will lead EV charge

January 11, 2019 09:18 AM UPDATED AN HOUR AGO
GM sees strong ’19 earnings, says Caddy will lead EV charge
MICHAEL WAYLAND

DETROIT — General Motors expects to boost earnings this year in the aftermath of a strong 2018 that the automaker said exceeded its guidance and internal expectations.

The healthy 2019 forecast includes earnings per share of $6.50-$7 and adjusted free cash flow between $4.5 billion and $6 billion. That compares with 2018 EPS guidance of $5.80 to $6.20 — a key indicator for Wall Street — and automotive free cash flow of $4 billion, which the automaker on Friday said it expects to beat when it reports year-end results on Feb. 6.

Wall Street liked the news, pushing GM shares up 8 percent in early trading to $37.51 even as overall markets were falling.

GM’s ongoing restructuring, which includes reducing its North American salaried workforce by 15 percent and closing up to five plants, will result in cost-savings between $2 billion and $2.5 billion this year, CFO Dhivya Suryadevara said during a media briefing Friday morning.

The automaker previously said it expects the restructuring to contribute $6 billion in cash savings by 2020 — $4.5 billion in cost reductions and $1.5 billion in lower capital expenditures.

GM, which is holding an investor day later this morning in New York, did not give exact financial guidance or expected sales for 2019. It expects total U.S. industry sales — including medium- and heavy-duty trucks — to be in the low 17-million range this year. Light-vehicle sales in 2018 were 17.3 million.

Cadillac, Cruise
GM also confirmed Cadillac will lead the automaker’s global charge for EVs. The luxury brand will be the first brand to feature a vehicle on the automaker’s next-generation EV platform, which is expected to arrive in 2021. The new platform will be a major part of GM’s plans to launch at least 20 new all-electric or full cell-powered vehicles by 2023.

“Cadillac will lead that and drive that globally,” GM President Mark Reuss told media via a teleconference Friday morning.

GM also confirmed it remains on track to launch an autonomous vehicle fleet in a “dense urban environment,” expected to be San Francisco, later this year.

Dan Ammann, CEO of GM Cruise, said the company has switched its entire fleet of self-driving vehicles to Cruise’s third-generation car, which has manual controls such as a steering wheel and pedals.

A year ago, the automaker debuted the fourth-generation “Cruise AV,” an autonomous vehicle without such manual controls. However, GM needs federal approval to launch such a vehicle, which it has not received.

Letter

Bargaining Committee

Chairman
Mike Herron
President
Tim Stannard
Zone at Large – 1st
Danny Taylor
Zone at Large – 2nd
Mark Wilkerson
Committeepersons
Joe McClure
Chad Poynor
Steve Roberts
Derek Lewis
Bill Cundiff
Dedrick Wells
Chris Potts
Jay Minella
Danny Bragg
Daniel Wray
Dominic Perez
Chris Brown

1853 Officers

President
Tim Stannard
Chairman
Mike Herron
Vice President
Darrell DeJean
Financial Secretary
Mark Wunderlin
Recording Secretary
Peggy Mullins
Trustee (3)
Jay Lowe
Dave Clements
Dave Spare
Sgt. at Arms
David C Spare
Guide
Ashley Holloway
E-Board at Large (2)
David Ryder
Steve Roberts

GM Unit Chair
Mike Herron
Leadec Unit Chair
Larry Poole
Ryder Unit Chair
Patrick Linck
AFV Unit Chair
Katherine McGaw
Retiree Chair
Mike Martinez