Expect more investment in tech, growth in China, and growth in General Motors Financial Co. business for 2016, parent company General Motors Co. told investors this morning.
GM presented its strategic plan for the year at the Deutsche Bank Global Auto Industry Conference, and the upshot of that plan is growing the manufacturer’s core businesses, including GMF.
“We made significant progress executing our strategic plan and the results are being demonstrated through our improved earnings,” said Mary Barra, GM’s chief executive.
The company said that its 2016 earnings per share outlook increased to the $5.25-to-$5.75 range, up from the previous outlook of $5.00-to-$5.50 per share. Meanwhile, GMF nearly tripled its penetration of the parent company’s 2015 U.S. sales to 30%, according to a company release.
“Moving forward, we will continue to keep the customer at the center of everything we do,” Barra said.
Also included in 2016 strategy, GM will continue to grow its presence in China, grow the Chevrolet and Cadillac brands on a global scale, and increase its investment in technology, GM President Dan Ammann said at the conference.
Previously, Bob Beatty, executive vice president of customer experience at GM Financial, described the captive’s relationship with its OEM partner as “symbiotic.”
“It’s different from what an independent bank or independent company can offer to an OEM,” he told Auto Finance News. “What benefits a GM dealer, benefits General Motors, which also, hopefully, benefits GM Financial.”
Among other developments at GM, Ammann highlighted the launch of a car-sharing program in the U.S., called “Let’s Drive NYC,” as well as a “long-term strategic alliance” with ride-hailing company Lyft.
“Disruption is real, and is a profit opportunity for GM,” he said.
