— This is the script of CNBC's news report for China's CCTV on January 15, Thursday.
Shares of GM under pressure on Wednesday here in the US really along with the rest of the market. But there is added attention on GM as the company gave its guidance for 2015. This year GM expects modest movement both in its earnings and in its profit margins.
Remember last year GM's margins came in at about 5.5%. The company expects that to be a little bit higher this year.
It also expects improvement in its auto business in all regions of the world including Europe while the company it is still on track to break even starting with 2016. It is also going to increase its capital expenditure to 9 billion dollars this year. It was about 7.5 billion dollars that was spent in capex last year. One footnote that got a fair amount of attention from investors, GM says its cash flow this year will be flat. There will not be an increase in cash flow. With just a few people asking questions about the strength of the business, but overall GM says during its guidance to investors at an investors' day conference in Detroit that it is.
GM is optimistic about where the business is right now and where it's headed both in 2015 as well as 2016.
Classic cars have been the top collectible investment for the past 5 years but muscle cars never really recovered from the recession; until now. According to Hagerty muscle cars jumped nearly 50% in the back half of last year and the average sale price is now $296,000 for the top 15 models that's back to the pre-recession peak.
Now the biggest car auction starts today in Scottsdale Arizona where more than $285M worth of cars will go into the hammer. Most of them are muscle cars and among the top sellers is Chevy Yenko Super Yenko. One of only 64 made. And Don Yenko was a racer and entrepreneur who modified Chevys with bigger engines and this one has more than 400 horses under the hood. Estimate? More than 1.5million dollars. Now the Hemi 'Cuda is considered by many to be the ultimate muscle car. This 1970 hard top is purple with a white interior. Estimate of up to $400 000. Now the god of American racing is Carroll Shelby and his 1969 GT500 Cobra Mustang convertible that he owned for years could sell for up to $600 000. And Corvettes, not really a muscle car but very cool nonetheless is 1968 L88 Race Car convertible could sell between 1-1.5M dollars.
CNBC Qian Chen, reporting from Singapore.