Once struggling General Motors has posted a record profit of $9.7 billion in 2015.
That figure is significantly higher than the 2.8 billion income the automaker earned in2014, even though both years included financial setbacks associated with the ignition-switch defect. GM CEO Mary Barra stated:
“It was a strong year on many fronts, capped with record sales and earnings, and a substantial return of capital to our shareholders.”
The company achieved a full-year EBIT-adjusted profit of $11 billion and a margin of 10.3 percent in North America — a record on both counts — but lost money in Europe, although not as much as in 2014. The Chinese market continues to be a boon, bringing in a total of $2.1 billion in equity income.
The company plans to pay its eligible North America unionized hourly employees up to $11,000 in accordance to the profit-sharing agreement established during the 2008-2009 industry crisis. Barra added:
“We believe the opportunities this will create in connectivity, autonomous, car-sharing and electrification will set the stage for driving value for our owners for years to come.”
Interestingly, GM’s cash flow and liquidity dropped. Q4 2015 cash flow was $2.2 billion compared to $3.8 billion in Q4 2014, while total automotive liquidity in 2015 was $20.3 billion compared to $25.2 billion prior.
Regardless, there is no doubt that GM is healthier than it has ever been in decades. With the new Chevrolet Volt and $30,000 Bolt EV now on the market, it will be interesting to see how much better it performs in the coming years.