A bumpy road may be ahead for GM

Source: MGN Online

DETROIT (AP) - General Motors is holding to its 2017 profit forecast despite some headwinds in the key U.S. market.

Used car prices are falling, U.S. sales are off to a slow start and car inventories are rising, all which can help cut into profits.

Chief Financial Officer Chuck Stevens tells industry analysts that GM will save money from the sale of its European unit. He also predicts U.S. sales will rebound and GM will get higher prices as it rolls out new SUVs.

Although overall U.S. auto sales fell 1 percent through March, GM expects them to rebound to near-record levels of around 17.5 million this year.

In January, the Detroit automaker predicted 2017 pretax profits from $6 to $6.50 per share, compared with $6.12 in 2016.



 
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