GM readies SUVs to shore up shrinking margins after record year

Southfield, Michigan

SWELLING inventories, rising incentives and a flat US car market usually suggest General Motors Co will be preparing investors for a tough year. Instead, the biggest US carmaker posted record annual profits on Tuesday and sees more growth on the horizon.

GM expects to match or exceed last year's results in large part because it's bringing three new sport utility vehicles to market in North America. That should help shore up its profit margin in the region, which narrowed to 8.4 per cent in the fourth quarter, from 10 per cent a year earlier, as Americans snub passenger cars including the Chevrolet Camaro and Cruze.