By Jeff Bennett
General Motors Co. intends to boost its capital expenditures by
20% this year as it looks to grow its luxury brand, improve its
overall vehicle portfolio and respond to regulatory demands.
The auto maker on Wednesday outlined a plan at an automotive
conference to spend as much as $9 billion over the next 12
months--the highest amount the company has spent since emerging
from bankruptcy in 2009. GM Chief Financial Officer Chuck Stevens
said the company intends to plow the money into the development of
more Cadillac models while improving the current offerings such as
the Chevrolet Malibu.
The 2015 investment strategy underscores a stark turning point
for the auto maker as it now looks to go on the offensive and grow,
bolstered by a surety the North America profit margins will
continue to rise and its European operations will return to
profitability next year. Declining recall costs will also help its
financial picture.
"We had a pivotal year in 2014," GM Chief Executive Mary Barra
said in a written statement. "We'll build on this momentum in 2015
and continue executing our plan to become the most-valued
automotive company."
Overall, GM expects its total operating profits and operating
profit margins to increase this year compared with 2014 after
adjustments for recall costs. The company also anticipates improved
automotive results in all regions. The company didn't provide
specific financial data since its fourth-quarter results won't be
released until next month.
Finance Chief Stevens reiterated the auto maker is on track to
achieve its 2016 targets calling for a return to profitability in
Europe and operating profits in North America of 10%.
Write to Jeff Bennett at jeff.bennett@wsj.com
Access Investor Kit for General Motors Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US37045V1008
Subscribe to WSJ: http://online.wsj.com?mod=djnwires