SOUTHFIELD — General Motors (GM) generates $1bn in pretax profit a month. Yet the stock market seems unimpressed, assigning the company a market value of just $50bn.So, why are GM shares so cheap? It is one of the more vexing questions company president Dan Ammann faces daily.The Detroit car maker posted record profits in 2015, will be close to that level in 2016 and is putting the pieces in place for a run at more growth in 2017, according to Ammann.GM has a wave of high-margin sport utility vehicles (SUVs) coming to market in the next few years, and the company believes that, even with the rapid growth of ride-sharing services, car sales will be steady and profitable."The core of where we make money will be sustained for a long time to come," he said. "We are delivering real results and we see opportunity to grow."At the same time, the tech giants that have been casting a shadow over GM’s future with plans for driverless cars look less threatening. Google has hinted it may not wan...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.