GM Planning $14B Investment in China

By Gabrielle Karol Auto FOXBusiness

GM CEO reveals multiyear financial strategy

FBN's Jeff Flock on GM's new business strategy and how the recall crisis has changed the company.

GM’s (GM) ready to hit the ground running, with the automaker announcing big plans for both European and Asian markets Wednesday morning.

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FBN’s Jeff Flock reports that GM CEO Mary Barra said the company will return to profitability in Europe by 2016. And there are serious expansion plans in place for China. GM will be investing $14 billion in China by 2018 and intends to open five new auto plants in the country.

Also on the docket? High-tech innovation. Flock reports that GM will introduce vehicle-to-vehicle connectivity by 2017.

And while GM has been plagued with recalls over the past year, Flock said Barra suggested that the ignition issues have led GM on a productive path forward.

“Well, obviously the whole recall situation was a tragic event. It had consequences that if we could undo, we absolutely would,” said Barra.

“But I think if you look at that, it caused us to take a huge step forward,” she added, in terms of product development and product integrity.

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