GM Is Defying Naysayers With A Bullish 2019 Outlook, And Plans To Take On Tesla With Cadillac

The global auto industry is entering a defensive crouch in early 2019, but General Motors is a notable exception.

On Friday, the largest US carmaker by sales kicked off its Capital Markets Day in New York with a bullish outlook for 2019 and a better-than-expected look back on its 2018 financial results, which the company will report in February.

GM doesn't anticipate a collapse in the US sales market; after four years of record or near-record sales above 17 million, the company guided Wall Street to a number in that range for 2019.

The company also expects the Chinese market — a source of concern for investors amid macro-economic pressures and the Trump trade war — to hold up, totaling about 27 million in vehicle sales for 2019.

Read more: How GM went from a government bailout and bankruptcy to being one of the world's best-run car companies a decade later

Ahead of its fourth-quarter and full-year earnings announcement, GM also said it should exceed its previous 2018 guidance of $5.80 to $6.20 per share on a diluted, adjusted basis. It also guided significantly higher for 2019's bottom line: a range of $6.50 to $7 per share, above Wall Street's anticipated consensus of about $6.

Adjusted free cash flow for 2018 should beat $4 billion, and GM guided toward an improved range of $4.5 billion to 6 billion for 2019. On a conference call in New York, CFO Dhivya Suryadevara indicated that GM's restructuring process in 2018 could contribute between $2 billion and $2.5 billion to the company's profit outlook.

On the product front, GM said that it would begin rolling out new vehicles in China this year. CEO Mary Barra added that a strong portfolio of SUVs and full-size pickups would drive the positive expectation for the bottom line.

GM president Mark Reuss at the unveiling of a Cadillac SUV.

Big news for Cadillac: It will become GM's main electric-vehicle brand

In other news, the company said Cadillac would become its lead electric-vehicle brand, spearheading a plan to introduce 20 new electrified vehicles by 2023.

GM is defying naysayers with a bullish 2019 outlook, and plans to take on Tesla with Cadillac
Wall Street Sees Oil Price Recovery In 2019
Tesla’s Elon Musk Suggests Ford Will Not Survive Next Recession
Varsity Brands Holding Co., Inc. -- Moody's downgrades Varsity Brands' CFR to B3 from B2 on planned upsizing of existing debt
Oil Ends 2016 On A Bullish Note
SEB AG -- Moody's assigns Counterparty Risk Ratings to 38 banking groups in Denmark, Sweden, Norway, Finland, Latvia and Lithuania