- China vows 'cooperation' over ship linked to severed Baltic Sea cables
- Australian tennis star Purcell provisionally suspended for doping
- Asian markets track Wall St rally as US inflation eases rate fears
- Luxury Western goods line Russian stores, three years into sanctions
- Wallace and Gromit return with comic warning about AI dystopia
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- Afghan bread, the humble centrepiece of every meal
- Honda and Nissan expected to begin merger talks
- 'Draconian' Vietnam internet law heightens free speech fears
- Israeli women mobilise against ultra-Orthodox military exemptions
- Asian markets track Wall St rally as US inflation eases rate worries
- Tens of thousands protest in Serbian capital over fatal train station accident
- Trump vows to 'stop transgender lunacy' as a top priority
- Daniels throws five TDs as Commanders down Eagles, Lions and Vikings win
- 'Who's next?': Misinformation and online threats after US CEO slaying
- Only 12 trucks delivered food, water in North Gaza Governorate since October: Oxfam
- InterContinental Hotels Group PLC Announces Transaction in Own Shares - December 23
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- Langers edge Tiger and son Charlie in PNC Championship playoff
- Explosive batsman Jacobs gets New Zealand call-up for Sri Lanka series
- Holders PSG edge through on penalties in French Cup
- Slovak PM Fico on surprise visit to Kremlin to talk gas deliveries
- Daniels throw five TDs as Commanders down Eagles
- Atalanta fight back to take top spot in Serie A, Roma hit five
- Mancini admits regrets over leaving Italy for Saudi Arabia
- Run machine Ayub shines as Pakistan sweep South Africa
- Slovak PM Fico on surprise visit to Kremlin
- Gaza rescuers say Israeli strikes kill 35
- 'Incredible' Liverpool must stay focused: Slot
- Maresca 'absolutely happy' as title-chasing Chelsea drop points in Everton draw
- Salah happy wherever career ends after inspiring Liverpool rout
- Three and easy as Dortmund move into Bundesliga top six
- Liverpool hit Spurs for six, Man Utd embarrassed by Bournemouth
- Netanyahu vows to act with 'force, determination' against Yemen's Huthis
- Mbappe back from 'bottom' as Real Madrid down Sevilla
- Ali hat-trick helps champions Ahly crush Belouizdad
- France kept on tenterhooks over new government
- Salah stars as rampant Liverpool hit Spurs for six
- Syria's new leader says all weapons to come under 'state control'
- 'Sonic 3' zips to top of N.America box office
- Rome's Trevi Fountain reopens to limited crowds
- Mbappe strikes as Real Madrid down Sevilla
- 'Nervous' Man Utd humiliated by Bournemouth
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- 2 US pilots shot down over Red Sea in 'friendly fire' incident: military
- Man Utd embarrassed by Bournemouth, Chelsea held at Everton
- France awaits fourth government of the year
- Germany pledges security inquest into Christmas market attack
General Motors sees solid 2022 on strong demand, improving chip supply
Despite a hit from the semiconductor crunch in the fourth quarter, General Motors on Tuesday projected a highly profitable 2022 based on strong consumer demand in the face of rising inflation.
Profits fell in the final quarter of 2021 as GM saw global car sales sink. But the big US automaker still managed to notch a record $10 billion in annual profits as tight retail inventories lifted prices.
GM signaled it expects comparable profits in 2022 in spite of cost pressures in commodities, freight services and labor.
Executives cited robust consumer hunger for new vehicles, with pent-up demand for "several million" vehicles driving the market, according to Chief Executive Mary Barra.
"We expect to see strong pricing and that will continue in 2022," she said in a conference call with reporters.
"We continue to have low inventory so those fundamentals are even more important than overall inflation from a vehicle price outlook," Barra said.
Barra also characterized the semiconductor supply outlook as gradually improving, though she added the caveat that additional Covid-19 outbreaks or another disruption also looms as a possibility.
"This is our best estimate," Barra said on a conference call with analysts. "This is what we think we're going to be able to do."
In light of this improvement in semiconductors, GM projected a 25-30 percent increase in auto production in 2022.
- Higher costs -
The big US automaker earned a profit of $1.7 billion for the quarter ending December 31, down 38.7 percent from the final three months of 2020 as revenues dropped 10.5 percent to $33.6 billion.
But for the full year, GM reported $10 billion in profits, up 55.9 percent from the 2020 level.
In the face of the chip shortage, GM has focused production on its most profitable vehicles, such as full-size trucks and sport-utility vehicles.
GM projected 2022 earnings of between $9.4 billion and $10.8 billion.
That outlook is in spite of $2.5 billion in increased commodity and logistics costs in 2022.
Chief Financial Officer Paul Jacobson said the range in GM's profit forecast reflects possible fluctuation due to shifting interest rates or commodity costs.
But Jacobson described current dynamics as a "very very strong business environment."
- 'Hello car' -
Barra also cited recent progress on GM's autonomous technology and its build-out of electric vehicle capacity following a series of major product launches and factory announcements.
On Tuesday, GM's autonomous venture Cruise opened up a "sign up page" for consumers to take a driverless ride.
A video on Cruise's website showed several riders in San Francisco gawking over the technology as they rode in a vehicle. One of the clips showed a couple greeting the self-steering vehicle as they enter.
"Hello car," the man says.
"This feels weird," says another.
Barra was effusive, likening her experience to "riding with an experienced driver who's paying attention all the time."
But as a result of these multi-billion dollar investments, GM has opted against restoring the investor dividend, she said.
Shares rose 1.1 percent to $54.68 in after-hours trading.
P.Mathewson--AMWN