Heavy-duty pickup sales will be flat this year. The plant in Flint, Michigan, was down for retooling last year, and more downtime is planned for this quarter as part of the launch of the new lineup.
View 3 Photos
Chief Financial Officer Dhivya Suryadevara said trucks represent an opportunity to increase revenue by $2 billion.
There will also be downtime at the plant in Arlington, Texas, to prepare to launch the next generation of full-size SUVs. A production loss of 23,000 vehicles in the first quarter caused a financial hit given how profitable they are. Suryadevara said there could be another 25,000 units of lost production this quarter.
Restructuring, which includes the idling of five plants in North America and a 15 percent reduction of the salaried workforce, has saved the company $400 million and will reduce costs by $4.5 billion by the end of 2020. Barra said 1,300 of the 2,800 workers impacted by plant closings have accepted transfers to other facilities.
The automaker spent $200 million on its Cruise autonomous vehicle operations in the first quarter and that figure will grow to $1 billion this year. Barra said 1,000 people will be hired, doubling the workforce. GM financials also benefited from the higher valuation of its shares in Lyft.
Restructuring of operations in Korea is also paying off but sales are down in China, a market where GM plans to introduce at least 20 new or updated models this year.