General Motors will push automotive operations for more profits in 2004 after a year in which its finance unit provided the lion's share of earnings.
Strong profits at General Motors Acceptance Corp. pushed GM's net income to $3.8 billion in 2003. GMAC posted $2.8 billion of that total, up more than $900 million from 2002. Meanwhile, GM's automotive operations slumped from $2.6 billion in profits for 2002 to $1.1 billion last year.
GM Vice Chairman John Devine said GM is targeting higher automotive profits for 2004. GM North America is aiming for net income of $1 billion to $1.4 billion, compared with $1.2 billion this year. The Asia Pacific region is expected to bring in $700 million to $800 million, up from $577 million. And GM Europe is expected to be in a range between breakeven and $100 million in profits, after losing $286 million in 2003.
Devine also said automotive operations will be expected to increase market share in all four regions: North America, Europe, Asia-Pacific and Latin America-Africa-Middle East. Last year GM gained share in all regions except North America, where light-vehicle share fell from 28.6 percent to 28.3 percent.
|4TH-QUARTER NET INCOME (LOSS)||4TH-QUARTER REVENUE||2003 NET INCOME||2003 REVENUE|
|Ford||($793 million)||$46 billion||$495 million||$164.2 billion|
|GM||$1.0 billion||$49.1 billion||$3.8 billion||$185.5 billion|
"We did three for four in '03, and we expect to do four for four in '04," Devine said.
Devine said introduction of new vehicles in the United States should help GM boost market share, although revenues may not move up sharply because several of the vehicles are low-end.
GM has enjoyed a favorable sales mix, with full-sized trucks and luxury vehicles selling well. But, Devine said, "On the negative side, we are introducing small cars and small trucks," which are less profitable than large vehicles.