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Between the lines on GM's bullish perspective – Axios



GM's optimistic forecast for 2019 surprised many investors Friday, triggering an 8% increase in GM stock, but CEO Mary Barra has laid the foundations for more than 3 years.

The big picture: Barra builds a case for how GM will remain healthy among factors she cannot control – trade friction, economic downturn and rising commodity prices – not to mention the historic transformation of the car.

Background: During Barra, GM pulled out of unprofitable markets such as Europe and redirected investments towards new technology, such as electric cars and automated vehicles.

  • She stood up for President Trump, who blasted GM for his decision to close 5 factories – 4 of them in the US – and cut nearly 15,000 jobs. Barra repeated his position today at a meeting with investors in New York.

"We are not afraid to make bold decisions because this is a changing industry. Our job is to ensure GM is here, is strong and is a leading company for decades to come."

– Mary Barra, GM CEO

What's new: GM said it was completed in 2018 stronger than expected, and the signal 2019 will be even better, the opposite of what the rest of the industry signals.

  • 2019 adjusted earnings will be $ 6.50 to $ 7 a share higher than analyst estimates.
  • Earnings from new pickups and SUVs will compensate for flat sales in the US and China.
  • Cost reductions in engineering and manufacturing will help finance its push in electric vehicles.

What's next: In addition to the continued focus on trucks, 3 new product lines will help drive GM into the future.

"The future comes quickly. We do everything we need to do as soon as possible to be ready for it."

– Mark Reuss, GM President


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