GM returns to growth and aims to overtake Ford in the US

General Motors is putting the brakes on and aiming to consolidate its role as a major player in the US market. This was announced by CEO and president Mary Barra on the sidelines of the presentation of annual results and guidance for the new year, according to Cnbc. "Looking ahead, we expect our annual production in the United States to reach a record 2 million units," she said, alluding to the rivalry with Ford, which has roughly the same production capacity as GM to date.

The last quarter ended for General Motors with revenues of $45.3 billion and a loss, due in part to the write-down linked to the revision of its electric motor strategy. For the current year, General Motors expects profits to grow to $2 billion and aims to return more value to shareholders through increased dividends and share buybacks, driven by demand for its higher-margin vehicles. According to the company, EBIT for this year will range between $13 billion and $15 billion, exceeding last year's $12.7 billion. GM reported earnings of $2.51 per share last quarter, beating analysts' estimates. The Detroit-based manufacturer, as mentioned, authorised $6 billion for share buybacks and an increase in the quarterly dividend by 3 cents to 18 cents per share.

Company guidelines emphasise that sales of expensive models and a favourable regulatory environment are fuelling growth. Despite the forecast of a slight contraction in the US car market and the impact of tariffs on imported components, the carmaker expects to generate enough profits to increase payments to shareholders.

Meanwhile, as reported by the Financial Times citing sources close to the matter, General Motors, together with Ford, is in talks with the auto parts supplier First Brands Group, currently in bankruptcy, for a potential financing package to keep the company operational during Chapter 11 proceedings.