General motors, largest debt ever for an auto company

Accuracy score :
97%

General Motors Co  GM
Summary (from latest annual report – 2015 and quarterly report 2016)
•    Total equity  : 40.93 billion USD
•    Market Cap is 45 billion USD ( last price of the stock is 29.23 USD)
•    General Motors Company designs, builds and sells cars, trucks and automobile parts. The Company also provides automotive financing services through General Motors Financial Company
•    Equity of total company increased from 35.45 billion USD in 2014 to 40.93 billion in 2016
•    Company has 14.89 billion USD in cash on account (from latest quarterly report  2016 year)
•     Total equity – cash on account = 40.93 billion USD – 14.89 billion USD = 26.04 billion USD
•    In 2016 company has 49.56 billion USD long-term debt, short – term debt was 21.58 billion USD                                                                                                                                                            (In 2014 company had 14.98 billion USD short-term debt , long-term debt was 31.85 billion USD)
•    In latest quarterly report - total equity increased to 40.93 billion  USD from 35.45 billion USD in 2014, total debt was 71.14 billion USD in 2016)
•    Company's revenue decreased in 2015 to 152.35 billion USD from 155.92 billion in 2014
•    Net income in 2015 was 9.68 billion USD, Net income in 2014 was 3.94 billion USD
•    In 2015 company paid 2.24 billion usd dividend to its shareholders

 

General Motors Co   Subsidiaries GM

 

General Motors design, build and sell cars, trucks, crossovers and automobile parts worldwide. GM also provide automotive financing services through General Motors Financial Company, Inc. (GM Financial). The current company, General Motors Company LLC ("new GM"), was formed in 2009 as a part of its 2009 bankruptcy restructuring, after the bankruptcy of General Motors Corporation ("old GM"). The new company purchased the majority of the assets of "old GM", including the name "General Motors". GM has a number of joint ventures, including Shanghai GM, SAIC-GM-Wuling and FAW-GM in China, GM-AvtoVAZ in Russia, Ghandhara Industries in Pakistan, GM Uzbekistan, General Motors India, General Motors Egypt, and Isuzu Truck South Africa. General Motors employs 212,000 people and does business in more than 120 countries.

General Motors produces vehicles in 37 countries under thirteen brands: Alpheon, Chevrolet, Buick, GMC, Cadillac, Holden, HSV, Opel, Vauxhall, Wuling, Baojun, Jie Fang, and Ravon. GM automotive operations meet the demands of their customers through their four automotive segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA).

  • GM has 16.8 % market share in North America (17.3 % market share in USA), 6.1% in Europe, 10.3% in Asia/Pacific, Middle East and Africa (14.9% in China), 15.4 % in South America (15.1% in Brazil)
  • Total Worldwide GM market share is 11.2% (9.958 million sold units in 2015)

 

GMNA primarily meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC brands. The demands of customers outside North America are primarily met with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. They also have equity ownership stakes directly or indirectly in entities through various regional subsidiaries, primarily in Asia. These companies design, manufacture and market vehicles under the Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands

General Motors divisions:

  • North America (3.61 million sold units in 2015, 3.08 million were sold in USA) - worth 15.23 billion USD
  • Europe (1.17 million sold units in 2015) - worth 4.93 billion USD
  • Asia/Pacific, Middle East and Africa (4.52 million sold units in 2015, 3.73 million were sold in China) - worth 19 billion USD
  • South America (645 thousands sold units in 2015) - worth 2.72 billion USD
  • GM Financial support leasing and sales of GM vehicles to consumers requiring vehicle financing and also to provide commercial lending to GM dealers - worth 3 billion USD

 

 

 

GM acquisitions :

 

  • On January 2, 2015 GM Financial completed its acquisition of an equity interest in SAIC-GMAC in China for 1 billion USD
  • In 2015 General Motors has acquired select assets of Sidecar for less than 50 million USD, GM plans to use the acquisition to help build its own transportation services under a new brand, Maven
  • In January 2016 GM invested 500 million USD in Lyft, a privately held company, representing a 9% equity ownership interest. GM plans to develop with Lyft an integrated network of on-demand autonomous vehicles in the U.S
  • In 2016 GM acquired Cruise Automation, a San Francisco-based developer of autonomous vehicle technology for 1 billion USD

 

Total = 2.55 billion usd

 

In March 2015 their Board of Directors authorized a program to repurchase up to $5.0 billion of GM common stock by the end of 2016. Effective January 2016 their Board of Directors increased the authorization to repurchase up to an additional $4.0 billion of GM common stock (or an aggregate total of $9.0 billion) by the end of 2017

 

 

Opinion about the company
Fundamentally it is a good company and in the future we can expect its growth (Total debt is very big (71.14 billion usd), company has 14.89 billion USD in cash on account, ROE is around 27 %).

 

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