久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

US EUROPE AFRICA ASIA 中文
Business / Auto Global

GM throwing off cash and confident it'll keep flowing

By Bloomberg (China Daily) Updated: 2016-10-10 11:21

GM throwing off cash and confident it'll keep flowing

Engineers check a Chevrolet car at a General Motors production line in Wuhan, Hubei province. [Photo by Shen Shen/For China Daily]

General Motors Co generates $1 billion in pretax profit a month. Yet the stock market seems unimpressed, assigning the company a market value of just $50 billion.

So why are GM shares so cheap? It's one of the more vexing questions Dan Ammann, the company's president, faces every day. The Detroit automaker posted record profits last year, will be close to that level this year and is putting the pieces in place for a run at more growth in 2017, Ammann said in an interview at Bloomberg News headquarters in New York. GM has a wave of new, high-margin sport utility vehicles coming to market in the next few years, and the company believes that, even with the rapid growth of ridesharing services, car sales will continue to be steady and profitable.

"The core of where we make money will be sustained for a long time to come," he said. "We are delivering real results and we see opportunity to grow."

At the same time, the tech giants that have been casting a shadow over GM's future with plans of high-tech driverless cars suddenly look less threatening. Alphabet Inc's Google has hinted it may not want to build a car after all, and Apple Inc's plans remain unclear. Even Tesla Motors Inc has lost the love of some investors, as a proposed merger with Solar-City Corp looks problematic.

Still, investors aren't listening to Ammann's message. GM stock is down about 6 percent this year to $32.17 a share, below the 2010 initial public offering price of $33 and way off its Dec 17, 2013, high of $41.53. That's despite record net income of $9.7 billion last year and a consensus forecast for $9.2 billion this year.

Ammann and GM Chief Executive Officer Mary Barra have had to wrestle with investor perceptions that the traditional car market has peaked. It hasn't helped that crosstown rival Ford Motor Co has reined in its own earnings forecast, pulling GM shares down as its stock falters.

GM is being punished in part because it has been late to develop new crossover SUVs like Honda's CR-V and BMW's X3. But all that's about to change, Ammann said. GM has a handful of SUVs coming out in the next few years, and a redesigned Chevrolet Equinox will go on sale in the first quarter of 2017 after seven years without a major update.

Meanwhile, GM's luxury brand continues to struggle. Cadillac has just two SUV models, the hulking Escalade and the more nimble XT5, compared with at least four from rivals including Daimler AG's Mercedes-Benz and BMW. Ammann said Cadillac will add several more in the next three years.

Raising prices

Even without those new models, GM has been raising prices to an average of $35,000 a car, $1,000 higher than last year and $5,000 over the industry average.

Perhaps GM's biggest perception problem with Wall Street is that it remains an old fashioned, out-of-style Detroit producer of mass vehicles, while investors see true innovation in the industry coming from the likes of Apple, Uber Technologies Inc and Google, all of which want to master self-driving models and ride-hailing apps that could replace individual car ownership.

Ammann sees those technological advances as an opportunity rather than a threat. Cars now travel an average of about 15,000 miles a year. A vehicle in a ride-sharing service could go as many as 80,000 and would need to be replaced-or perhaps refurbished in some fashion-far more often, he said.

New revenue source

That's why GM has invested in Lyft Inc and is renting cars to Lyft drivers-especially those vehicles that customers have leased and brought back to dealers. This provides GM with another new source of revenue and keeps low-mileage models from going to the used-car market and undercutting its new-car prices.

Still, ride sharing could prove to be the weak link in GM's growth strategy. Lyft is expanding but is far outflanked by market leader Uber, newly flush with an investment from Chinese ride-share company Didi Chuxing.

Ammann wouldn't say whether GM would work with Uber by providing it with leased vehicles, as Toyota Motor Corp has agreed to do, or by jointly developing a fleet of self-driving cars. Right now, he said, the company is working on this with Lyft.

"The ride-sharing business is in its early days, and we're in the early days of the shift from ownership to sharing."

There are some signs GM is getting its message across to investors. Nine of the 23 analysts covering the company have some version of a buy rating on its stock and just one has a sell rating, according to data compiled by Bloomberg.

Transformational tech

The shares saw a 2.4 percent bounce last month after a recommendation from Morgan Stanley analyst Adam Jonas, long a bull for Tesla and considerably dour on Detroit's venerable automakers. He reasoned GM's core business will generate stable profits for the next two years and the transformational technologies from Silicon Valley are further off than people realize. His recommendation for GM came several months after he downgraded Tesla.

In discussions with investors, however, he found "great apathy and skepticism" toward the company; "sentiment appears even lower than we had previously thought," he said in a note 10 days after his recommendation. The shares fell 1.3 percent that day.

Hot Topics

Editor's Picks
...
主站蜘蛛池模板: 久久免费小视频 | 国产美女视频网站 | 怡红院免费在线视频 | 亚洲福利国产精品17p | 91欧美亚洲| 色播亚洲视频在线观看 | 九九视频高清视频免费观看 | 日韩性网站 | 欧美日韩国产人成在线观看 | 特黄a大片免费视频 | 国产精品99在线观看 | 俄罗斯aa毛片一级 | 日韩精品视频免费在线观看 | 91日韩精品天海翼在线观看 | 国产免费久久精品99 | 国产九九精品 | 日本丶国产丶欧美色综合 | 美国毛片免费观看 | 国产精品久久一区二区三区 | 免费福利在线看黄网站 | 欧美巨乳在线 | 日产一区二区三区四区 | 欧美ab片 | 亚洲精品久久一区毛片 | 99久久精品免费看国产免费 | 欧美色操| 国产亚洲美女精品久久 | 日本无玛 | 在线视频第一页 | 久久99精品久久久久久秒播 | 久草免费看 | 久久99精品久久久久久青青91 | 亚洲精品久久久久久久无 | 午夜一级成人 | 在线a亚洲视频播放在线观看 | 精品真实国产乱文在线 | 香港激情三级做爰小说 | 欧美一级片在线视频 | 亚洲国产欧美一区二区欧美 | 在线观看日本污污ww网站 | 国产成人啪精品 |