General Motors Co. on Jan. 11 raised its adjusted diluted EPS and free cash flow outlook for fiscal 2019.
The automaker expects adjusted diluted EPS to come in at $6.50 to $7 for the year ending Dec. 31, 2019, versus its previous guidance of $5.80 to $6.20. It also predicts an adjusted automotive free cash flow of $4.5 billion to $6 billion for the year.
"The company's strong outlook benefits from a continued robust product lineup, growth of adjacent businesses, and business transformation initiatives," GM said in a statement.
The company also announced that Cadillac will become its lead electric vehicle brand, confirming an earlier report.
GM said its Chevrolet Silverado and GMC Sierra pickup trucks have helped the company expand its U.S. retail market share growth in the light-duty pickup segment since August 2018. To strengthen its portfolio, GM will continue to launch the Cadillac XT4 and Chevrolet Blazer SUV in the U.S. as well as introduce the Cadillac XT6 luxury SUV.
For its international operations, GM expects to launch in 2019 a new line of vehicles in China, with the Chevrolet Tracker the first crossover model. Afterward, it will launch the range in South America and Mexico.
On Nov. 26, 2018, GM announced that it would cut car production and reduce its salaried staff by 15% in North America as part of a plan to generate about $6 billion in cash savings by the end of 2020. The move was criticized by President Donald Trump and sparked worker protests in Canada.
GM said in the Jan. 11 statement that as a result of the growth of crossovers and trucks, it would be able to provide about 2,700 positions to the 2,800 active hourly U.S. workers impacted by the November announcement. It added that GM Canada is working with colleges, universities, dealers and more than 20 local employers who have expressed an interest in hiring GM staff, and it would support retraining for workers at its Oshawa Assembly Plant in Ontario, which is set to be closed.
The company said it would seek a $3 billion revolving credit facility to "fund immediate transformation costs and provide additional financial flexibility."