General Motors said last year’s earnings would be higher than expected and this year’s may rise even further as it focuses on building more lucrative vehicles, a strategy that infuriated lawmakers because of the U.S. plant closings and layoffs it entailed.
Earnings in 2019 will be $6.50 to $7 per share, the Detroit based company said Friday, higher than most analysts’ estimates. The carmaker reiterated plans to deploy its first commercial fleet of self-driving cars and said retail sales in China would be comparable to 2018 despite a slowdown in the country’s economy exacerbated by a trade fight with Washington.
President Trump’s tariffs on $250 billion in products from China, and the country’s retaliatory duties on American imports, have slowed spending in the country even as double-digit levies on steel and aluminum shipments to the U.S. drive up production costs for manufacturers here.
GM continues to face pressure over its decision to shutter facilities in Ohio, Michigan and other locations as it invests more in electric and autonomous vehicles. Following the announcement, Ohio lawmakers like Republican Sen. Rob Portman and Democratic Sen. Sherrod Brown blasted the company for abandoning the state; Trump was equally critical.
GM rose 8.1 percent to $37.55 in New York trading on Friday.
