General Motors' earnings (GM) 2018 exceeded expectations and the automaker expects strong GM gains also in 2019, asserting strength in its biggest markets despite adverse winds. GM also said that its prestigious Cadillac brand will be the "spearhead" for future electric vehicles. General Motors' shares jumped to the news.
On Friday, GM said that the 2018 EPS will exceed the previous $ 5.80- $ 6.20 guide. It is also expected to overcome a previous view of the $ 4 billion correct vehicle cash flow.
GM outlined an even brighter picture for 201
"Our transformation remains a very dynamic process," said GM Mary Barra's CEO on a recall of investors and analysts. GM will continue to strengthen its core business by investing in technologies that transform the future of mobility, he added.
GM Stock Soars
The GM shares rose 8.5% to 37.69 in the morning trading on the stock exchange today. The shares have exceeded the moving averages of 50 days and 200 days.
Highlights GM Investor and Analyst Day
The leading US carmaker highlighted these measures as the basis of its bullish prospect:
Investing in a higher yield products . The new Cadillac XT4 and Chevrolet Blazer SUVs, and the all-new luxury Cadillac XT6 SUV, will boost the 2019, GM said. In addition, GM will benefit from a full year of sales of the brand new full-size Chevrolet Silverado and GMC Sierra pickups. In the hot segments of SUVs and pick-ups, GM has a "huge competitive edge" over the combined strength of its GMC and Chevrolet brands, said GM president Mark Reuss. The retail market share in the truck segment is also growing, with average transaction prices exceeding key rivals, GM said. GM dominates the sales of trucks in the United States together with Ford Motor (F). GM continues to move away from sedans that sell slowly, while betting on its future with pickup trucks and SUVs.
A new range of vehicles on international markets . GM plans to launch more than 20 new or upgraded vehicles, including crossovers, in China in 2019. This represents "the strongest product mix we have ever brought to China," Matt Tsien, president of GM, told investors China. The Chinese market is the largest in GM, predating the United States. General Motors said on Friday it sees China "constructively" despite the recent winds against it, including the slowdown in sales at the sector level. It sees car sales in China in 2019, across the industry, approximately in line with 27 million units last year. He sees "the improvement of the macro environment" in South America, another key market in which he faces challenges.
Commercial robotaxi service: GM says that it is still on track to launch a robotaxi service by the end of the year. GM said it had raised a total of $ 5 billion of external capital for its autonomous cruise vehicle last year, including an investment of $ 2.25 billion in May from the Japanese Softbank Vision Fund. Cruise has just signed a partnership with DoorDash for food delivery. It is a way in which the automaker hopes to tap into what Reuss has called "new and potentially lucrative revenue streams" for the mobility sector. The company also reported progress in developing a "purpose-built" autonomous vehicle
Cadillac will be GM's leading electric vehicle brand: Cadillac will become GM's flagship EV brand and will have a battery completely new vehicle architecture, GM said. This indicates that GM, which had previously launched the small Chevrolet Bolt, is moving towards luxury electric vehicles like European car manufacturers, chasing Tesla (TSLA).
The new EV battery will be "modular" and "flexible", says GM. This will allow you to easily integrate it into a wide range of body styles, from cars to vans to crossovers and SUVs. The critical components, battery cells and battery system are also designed to be used on different vehicle segments.
In China, the world's first EV market, GM says that half of its new models planned in the coming years will be "new" models of energy vehicles, GM said. The country also has a growing luxury segment and Cadillac will become the "tip of the corporate launch in electric vehicles," Reuss said.
The savings on GM costs add up: By 2020, GM expects about $ 6 billion in savings. The loosening of the belt in the last year included a plan at the end of 2018 to cut thousands of job cuts and close down several factories.
Ford Cutting Jobs
The day before, Ford Motor (F) said that it will cut thousands of jobs in Europe in an attempt to improve profitability. Ford shares rose by 1.8% Friday
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