Auto Maker Giant Has Record Year in 2015
Auto maker giant, General Motors, recently announced its fourth quarter earnings. After a record year, GM reported net income of $6.3 billion in the last quarter of 2015. This was caused by consumers buying less gas efficient models, as gas in United States has continued to stay very low at around $2 a gallon. Sales in North America rose 8.6% in the final quarter and 14% in China. This could have a great impact heading into 2016, where consumers were initially predicted to go more into electric vehicles and more gas efficient models. If the current trend stays true, then the first quarter of 2016 could spike as well. In Europe, the company continues to struggle as they are still in the negative in the difficult continent. However, GM's CFO has stated “Breaking even in Europe in 2016 is a companywide focus and we’re confident that we’re going to achieve that,” leading many to view GM's prospects in the region optimistically.
GM did well in other aspects last year as well. It invested $500 million in ride sharing start up Lyft as well as purchased parts of its ex-rival, Sidecar Technologies. They also have earned profits from a joint venture in China worth $572 million, showcasing their versatility in the market. Their mission has been summarized by Mary Bara, CEO of GM, who states, “We continue to strengthen our core business, which is laying the foundation for the company to lead in the transformation of personal mobility”. Their outlook on this mission could be very profitable for them as new investments in China, Japan, and South America are always on GM’s radar as they look to expand the reach of their influence.