General Motors CFO Chuck Steven graced several shows recently to announce their company's Financial Performance for the fourth quarter. Although he provided the highlights of the company some analysts are skeptical regarding the ability of GM to maintain profitability while assuring the balance between supply and demand.
It was also reported recently that its profits in the fourth quarter of 2016 fell due to a strong British pound against the U.S. dollars, according to Reuters News. Analysts also attributed the glum forecast for 2017 to the increasing inventory of unsold automobiles in the US. New automobile technology and new models of SUVs and cargo trucks would not help General Motors overall growth forecast in 2017.
The share price for rival car makers Fiat Chrysler and Ford Motors also went down. This shows the dynamics of the auto industry, said GM Chief Executive Officer Mary Barra, referring to the media asking GM if the auto industry might be affected by Trump's administration imposing new taxes on imported parts and vehicles.
GM Chief Financial Officer Stevens seemed unperturbed by the proposal of a new tax, saying that the value of imported parts in GM cars is way lower than those of their competitors. However, he did say that GM is not against a tax reform on imported vehicles or parts.
Stevens added that General Motors intends to reduce automobile inventories in 2017, referring to accounts that 845,000 vehicles were unsold by dealers at the end of 2016, reported The Star. Stevens said they built up the inventories in anticipation of new model launches.
Business Insider reported that Genera Motor's 4th quarter net earnings declined to USD 1.8 billion from USD 6.3 billion from a year ago, or US$3.92 a share. Despite lower 4th quarter net earnings, GM's total car sales were 3.3 percent higher at 2.78 million units than the fourth quarter of 2015. Surprisingly, as of December 2016, GM recorded 1.05 million units sold globally and the fourth year the third largest car company in the world has topped its record for global sales of automobiles.
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