GM To Cut Costs By $5.5 Bln, September Sales Up 12.5%

(RTTNews) - Automaker General Motors Co. (GM) said Thursday that it expects to cut about $5.5 billion in purchasing, manufacturing and administrative expense during the three-year period until 2018, more than offsetting its increased investments in brand development and technology.

In a separate statement, GM reported a 12.5 percent year-over-year increase in its U.S. vehicle sales for the month of September 2015.

The automaker also said it plans to build upon nearly two decades of connectivity leadership by venturing into new business opportunities, including two new car- and ride-sharing projects and through deployment of autonomous vehicles.

GM shared its plans with investors during its Global Business Conference at the company's Milford Proving Ground.

The company said that by strengthening its core business through global growth initiatives and cost efficiencies, it plans to increase its earnings per share growth and generate significant shareholder value.

At the conference, GM said that late in 2016, it will add a fleet of 2017 Chevrolet Volt plug-in hybrids designed to drive autonomously within its renovated Warren Technical Center campus.

GM employees can reserve a Volt using a car-sharing app and then select a destination. The company's autonomous technology will bring the vehicle to its destination and park it.

GM, which has been testing its "Super Cruise" autonomous driving technology since 2012, confirmed that the feature will be available in the 2017 Cadillac CT6.

GM also announced two new car- and ride-sharing projects, one in New York City operating today and one to come in first quarter next year in another U.S. city. The company expects the projects to further expand its participation in alternate transportation models and generate additional revenue as well as profits.

During the conference, GM also unveiled an electric bike, or eBike concept, designed to help people stay mobile in densely populated urban areas.

In collaboration with Honda, GM is developing a next-generation hydrogen fuel cell stack and hydrogen storage systems. GM also said it plans to jointly develop a commercially viable fuel cell vehicle with Honda in the 2020 time frame.

GM also said it is using an array of materials, including various grades of steel, aluminum and composites, as part of its efforts to reduce the weight of vehicles it develops.

GM said it expects to grow its business over the next five years through key initiatives, including a $5 billion investment in an all-new Chevrolet growth market vehicle family. In the same time frame, GM also plans to introduce a large number of all-new or refreshed vehicles globally.

For fiscal 2015, GM projects earnings of $4.50 per share, up from $4.12 per share in 2014. The company also forecasts earnings to rise to a range of $5.00 to $5.50 per share in 2016.

GM reported a 12.5 percent year-over-year increase in its U.S. vehicle sales for the month of September 2015.

The company's total U.S. vehicle sales for September was 251,310 units, up from 223,437 units in the prior-year month. Retail deliveries climbed 17 percent from last year, making September the sixth month in a row that GM has increased retail market share year over year.

Cadillac brand sales rose 7.8 percent in September, Chevrolet sales grew 10.9 percent and Buick sales increased 5 percent. The company said overall there was demand for crossovers and pickups.

GM is trading at $30.41, up $0.39 or 1.30 percent on a volume of 5.99 million shares.