While General Motors Co.’s overall performance improved in 2013, a net loss from special items and incremental tax expenses brought the automaker’s net income to $3.8 billion, down from $4.9 billion in 2012.
The automaker announced today that the special items, which had a negative impact of $1.3 billion, included charges for several strategic decisions taken to improve the company’s future competitiveness in key global market.
“The tough decisions made during the year will further strengthen our operations,” says Mary Barra, CEO of GM. “We’re now in execution mode and our sole focus will be on delivering results on a global basis.”
Factors that impacted the automaker’s fourth quarter net income of $900 million included the exit of the Chevrolet brand from Europe and the termination of manufacturing operations in Australia. A favorable tax settlement and a gain on the sale of an equity investment in Ally Financial, along with other smaller items, partially offset these charges.
The automaker set a record for earnings in North America, with EBIT-adjusted income of $7.5 billion, compared to $6.5 billion in 2012. As a result, the company will pay profit sharing of up to $7,500 to approximately 48,500 eligible hourly employees in the U.S.
“In 2013, we strengthened our balance sheet and delivered consistent earnings, providing the foundation for a quarterly dividend for our shareholders this year,” says Chuck Stevens, executive vice president and CFO. “This year we’ll leverage our strength in the U.S. and China to execute important restructuring activities in other key global operations.”
Following 18 vehicle launches in 2013 in the U.S., the company will introduce 15 new or upgraded models this year. In China, GM and its joint venture partners will introduce 17 new or upgraded models in 2014. The company also announced plans to open four additional plants in China through 2015, enabling production of up to 5 million units annually.
Vehicles being introduced in key markets globally in 2014 include the Chevrolet Silverado HD, Tahoe, Suburban, Colorado, Aveo and Sail; Cadillac ATS Coupe, CTS and Escalade; GMC Sierra HD, Yukon XL, Denali XL, and Canyon.