Although General Motors earned a slightly smaller net income from 2016 compared to the previous year, UAW-represented workers will get record $12,000 profit-sharing bonuses due to record pre-tax profits in North America.
The automaker earned a global net income of $9.43 billion in 2016, beating analyst expectations and earning $6.12 per share for the year, a 22 percent increase from 2015, according to the Detroit Free Press.
“By nearly every measure, 2016 was a great year,” CEO Marry Barra said. “This underscores the progress we are making in strengthening our brands and putting our customers first in everything we do,” the Detroit Free Press reported.
The record North American numbers were fueled by a strategy that focused more on retail sales and cut back on sales to rental-car companies, which are less lucrative, according to Forbes.
Even so, GM’s stock fell $1.63 per share, about 4.5 percent, after the announcement on concerns about slowing car sales and the costs of developing self-driving cars. CFO Chuck Stevens said, “We expect to see another strong year in 2017. We’re comfortable with the guidance we have in 2017 and we are going to get after it,” the Detroit Free Press reported.
GM ended 2016 with a 71-day supply of cars and trucks, slightly higher than the number the industry views as ideal, the Detroit Free Press said. GM has continued to cut back on its production of the Chevrolet Cruze, but will increase its inventory early in 2017 when it launches several new SUV models.
“We will continue to be very disciplined on aligning supply and demand,” Stevens said, the Detroit Free Press reported.
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