GM sees Europe profitable, better US margins in 2016

(MENAFN- AFP) General Motors Wednesday said it will return to profitability in its European division and reach a key profit target for its US division in 2016.

GM chief executive Mary Barra said the automaker will achieve 10 percent profit margins in the US in 2016, up from 7.8 percent in 2013.

GM also pledged to grow the Cadillac brand as a luxury flagship, highlighting plans to establish a New York headquarters for Cadillac separate from GM's Michigan base, and to introduce four new vehicles in North America in 2015.

The company also promised to "return excess cash flow" to stockholders through "strong and growing dividends based on sustained improvements in the company's underlying performance."

GM said its operations in South America "continue to improve" due to product launches and management efficiences. But the company did not lay out targets for the region, which has been challenged by a currency devaluation in Venezuela and slowing economic growth in Brazil.

Barra painted a strong future for the company at her first investor day appearance since becoming chief executive in January.

She has said she wants to focus on growth after most of her first nine months on the job have been spent responding to a the faulty ignition recall scandal..

Separately, GM announced that September auto sales rose 19 percent compared with a year ago to 223,437, slightly below analyst projections.

GM shares rose to 2.7 percent to $32.80 at mid-morning.