General Motors Co. has said that it expects a modest gain in pre-tax profit this year as global sales growth slows.
The No 1 US automaker joined others in forecasting slower growth in the red-hot US market. Still, GM and industry analysts expect sales to reach or exceed 16 million for the first time since 2007.
The company said that it plans to use the profit from the US and China, now its largest market, to boost weaker parts of its business. For instance, it will spend an estimated $1.1 billion to restructure its European operations.
“We’re taking advantage of the strength in the US and China to engage in other areas such as our international operations,” GM President Dan Ammann said at a conference call with reporters. Ammann said GM’s restructuring costs should drop off significantly in 2015.