"We made significant progress executing our strategic plan and the results are being demonstrated through our improved earnings," CEO Mary Barra said in a statement.
The automaker's top executives — Barra, President Dan Ammann and Chief Financial Officer Chuck Stevens — presented their 2016 outlook Wednesday morning at the Deutsche Bank auto industry conference in Detroit.
Specifically, they indicated GM expects to earn between $5.25 and $5.75 a share this year, up from previous guidance of between $5.00 and $5.50 a share.
Expanding the share repurchase program by $4 billion comes about 10 months after the first $5 billion was initiated in response to pressure from a group of four hedge funds who argued that GM's shares were undervalued.
Shares of General Motors surged almost 5% in pre-market trading. Its stock has fallen 11% in the first seven trading days of 2016.
There is some uncertainty in China from recent stock market declines there, but GM will tell investors that it expects its sales to continue growing there.
"It's going to be more volatile (in China)," Barra said. "As the market there continues to mature we have opportunities in the aftermarket and finance."
Despite slower economic growth in China, GM expects to bring its global pre-tax profit margin to between 9% and 10% of sales by early next decade. It is earning more than 10% now in North America, but not in any other region. It has been losing money in Europe for at least 15 years, but expects to be profitable there in 2016.
Barra also expressed confidence that new forms of mobility such as car and ride-sharing are more of an opportunity than a threat. Last week GM announced a $500 million investment in ride-sharing service Lyft.
"We will continue to keep the customer at the center of everything we do," she said. "We are making the right investments and taking the actions necessary to lead in the transformation of personal mobility."
Ammann said GM and other automakers are seeing an increase in vehicles coming off three and four-year leases. Many will be resold at auction. But expanding Shop-Click-Drive is a way to offer those returning vehicles directly to consumers and bolster the prices of the vehicles.
Consumers will be able to compare the sticker prices on these used vehicles with the fair book value as compiled by Kelley Blue Book. They also will have able to get a Carfax vehicle history report.
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