Although the result was slightly down on the previous year, General Motors has reported another bumper bottom line with 2016 net income at US$9.43bn (2.7% down on 2015).

There were new records posted for revenue (net revenue was up 9.2% to US$166.4bn), EBIT-adjusted (up 15.9% to $12.5bn) and EBIT-adjusted margin (up 0.4pts to 7.5%) . Segment results show that the main driver of profit was North America. There were losses for GM in Europe and South America.  

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“By almost any measure, 2016 was a great year for our business and I am confident we can achieve even stronger results,” GM Chairman and CEO, Mary Barra said in a statement. “We’ll work to build on our momentum, while continuing to drive our company to innovate and shape the future of mobility.”

In the NA region, GM posted calendar year records for EBIT-adj. of US$12bn and revenue of US$119bn. The company achieved 10.1% EBIT-adj. margin for the year  –  the second consecutive year this margin has been 10% or greater.

GM said it reduced losses in Europe in 2016 by US$0.6bn during the year – but that still left a US$0.3bn EBIT-adj loss. Without the negative US$0.3bn impact of Brexit, GM would have achieved its objective of break-even for the year.

GM was upbeat on 2017 prospects. The company said it expects to deliver full-year 2017 EPS-diluted and diluted-adjusted of US$6.00-US$6.50; maintain or improve EBIT-adjusted and EBIT-adjusted margin; and generate higher revenues, compared to 2016.

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GM expects its global volume from new or refreshed vehicles to grow to 38% from 2017-2020, up from 26% in the 2011-2016 period. New or refreshed crossovers, trucks and SUVs are expected to represent a majority of this volume between 2017-2020.

The company also raised its cost efficiency target for 2015-2018 to $6.5bn, an increase of $1bn.