General Motors Discloses Details of $5.4 Billion Investment in U.S. Operations - TheStreet.com
, in a signal to investors and the United Auto Workers union, revealed some details of the $5. 4 billion investments it will make in U. S. manufacturing over the next three years to improve output, quality and profitability. On Thursday morning, GM said it will make investments totaling $783. 5 million in three plants in southeast Michigan. automaker in terms of vehicle sales said last year it planned to achieve a 10% return in earnings before interest and taxes in North America by 2016. GM's goal is for the entire company to return 10% by early next decade. GM's 2014 EBIT-adjusted margin in North America was 8. 9% and 4. 2% for the entire company. In the first quarter, GM said it had made a 19. 5% return on invested capital -- net income minus dividends, divided by capital. GM's return on EBIT for 2014 was 4. 2%. Of the 20 equity analysts following the stock, 13 have buy or strong buy ratings, while seven say hold or underperform. The automaker began paying a 30-cent cash dividend in early 2014. GM, since emerging from bankruptcy in June 2009, has invested about $16. 8 billion in the U. S. , about $11. 4 billion of which it invested since its 2011 labor agreement with the UAW. A key factor has been the union agreeing to create a second, lower-tier wage scale for new UAW workers. Source: www.thestreet.com
