DETROIT — General Motors Co. said Wednesday it expects a modest gain in pretax profits this year as global sales growth slows.
The No. 1 U.S. automaker joined others in forecasting slower growth in the red-hot U.S. market. Still, GM and industry analysts expect sales to reach or exceed 16 million for the first time since 2007.
GM said it plans to use profits from the U.S. 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 U.S. and China to engage in other areas such as our international operations,” GM’s president, Dan Ammann, said on a conference call with reporters. Ammann said GM’s restructuring costs should drop off significantly in 2015.