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Posts Tagged ‘GM market share’

GM’s Eroding Market Share Raises Concerns

Strong reviews do little to buoy GM’s position.

by on Nov.04, 2013

Even strong 3rd-party endorsements for products like the Cadillac ATS have failed to boost GM's share.

Despite winning wide praise for its improving quality and well-reviewed new products, General Motors has been steadily losing market share, and that is raising concerns about the maker’s competitiveness, according to a new report from the General Accounting Office, which continues to monitor the U.S. Treasury Department’s investment in the Detroit maker following its 2009 bankruptcy.

The Treasury took a majority stake in GM but has been rapidly selling down its shares in recent months and expects to sell off the last of its holdings by next April – with the latest government report estimating taxpayers will ultimately lose about $9.7 billion on the bailout.

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On the positive side, the GAO report said the globe’s second-largest maker “has shown increasingly positive financial results” since its emergence from Chapter 11 protection, with “positive and growing operational cash flow, and a stable liquidity position.”  On the downside, “However, GM faces continued challenges to its competitiveness. For instance, its market share of vehicles sold in North America remains smaller today than in 2008. Furthermore, GM continues to carry large pension liabilities,” the report noted.

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Market Share, Margins Expected to Rise, GM Takes Another Step Towards Fully Restoring Dividend

Company declares dividend while CFO says new vehicles will drive up profits.

by on Jan.15, 2013

GM Chief Financial Officer Dan Ammann said the company expects profits to increase because of its new products.

This story has been revised to reflect an earlier GM preferred stock dividend payment.

General Motors will pay a dividend on its preferred stock, it announced Tuesday afternoon. The decision appears to have been backed up by GM’s anticipation of its 12th quarterly profit in a row – as well as the expectation that the maker will be able to drive up sales, margins and profits in the coming year.

The news comes less than a week after Ford Motor Co. revealed plans to double its own dividend on common stock.

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“Our portfolio of new, world-class vehicles puts us on a strong footing to grow profitably,” said Dan Ammann, GM senior vice president and chief financial officer, who addressed an industry conference in Detroit as the announcement of the new dividend payment was released.

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General Motors Poised for “Breakout”

GM bets on flood of new product to boost sales, share, profits.

by on Jan.07, 2013

GM has a "huge opportunity" with the new products it will launch this year, insists Pres. Mark Reuss.

General Motors Co. is poised for a major breakout that will transform the company over the next 18 months, according to the head of the company’s core North American operations.

Mark Reuss, president of GM’s North American Operations, described as a “huge opportunity” the flood of new products the maker plans to introduce over the next several years, refreshing what he acknowledged is currently “the oldest product line” in the industry right now.

There are already significant signs that GM’s push to update that line-up is taking hold, the maker noting that it was the first to sell more than 1 million vehicles in a single year that get an EPA-estimated 30 mpg or better on the highway.

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“Our product portfolio is now the oldest in the industry (but) we’re going to have the biggest change in our product portfolio in our history. It’s a huge opportunity for us,” noted Reuss, who said GM was already challenging Asian brands in segments where fuel efficiency is of primary importance.

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GM Betting Improved Quality, Customer Service Will Yield Big Payoff on Bottom Line

A 1% customer retention gain will yield $700 million.

by on Sep.19, 2012

Customer retention is GM's next big target, says quality and service chief Alicia Boler-Davis.

Sometimes, it’s the little things that add up.  Just ask General Motors which is making a major push to improve quality and customer service in the hopes of boosting customer retention.

Right now, company officials suggest, about 52% to 53% of GM buyers can be expected to trade in for another Chevrolet, Buick, Cadillac or GMC product next time around.  Simply boosting that by 1% would have a significant impact on the bottom line, however.

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“A single-point improvement in sales retention is the equivalent of 25,000 (added sales) or $700 million in annual revenue,” explained Mary Barra, GM’s global product development chief, during a discussion of the maker’s plans to enhance quality and customer satisfaction.

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Signs of Recovery at GM, Asserts New Sales Chief

Economy bottomed out, adds chief analyst, but recovery slow.

by on Oct.28, 2009

New General Motors Sales czar Susan Docherty would rather fight than have you switch to another brand.

New General Motors Sales czar Susan Docherty would rather fight than have you switch to another brand.

While the recovery is just taken hold, there are positive signs in the economy, and that’s translating into some measurable gains for the post-bankruptcy General Motors, company officials declared during a Wednesday meeting with the news media.

The struggling automaker expects to gain share, when the final sales numbers are counted for October, and those cars, trucks and crossovers are rolling out of dealer lots at a higher transaction price than a year ago, said Susan Docherty, GM’s new director of sales.  Residuals – industry speak for projected trade-in values – are rising and the automaker is hoping to “dial back” on incentives, which remain the highest in the industry.

But Docherty, who assumed her new post just nine days ago, also acknowledged that GM has some significant challenges ahead of it.  For one thing, it has to improve its standing in the annual and highly influential Consumer Reports magazine survey of vehicle dependability.  In a news conference just yesterday, CR editors said that GM’s performance is “inconsistent,” at best.

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The carmaker’s mediocre performance is “one of the things that keeps me up at night,” said Docherty, who was previously in charge of the Buick-Pontiac-GMC brand group.
“Clearly, there are signs of an economic recovery from the worst recession in 70 years,” noted Mike Di Giovanni, GM’s chief market analyst, who joined Docherty for today’s briefing.  But he warned that while the worst may be over, the economy has a long way to go, and so does the auto industry.

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Reworking General Motors on the Fly

U.S. and Canadian results remain impediment to profitability and an IPO. Top sales exec, Mark LaNeve, leaves company.

by on Oct.07, 2009

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"We've made a lot of progress in 90 days ... We need to prove ourselves every day and we will."

General Motors CEO Fritz Henderson said this morning that the new management team and the Board of directors are successfully running the business and learning at the same time on how to transform the management culture to one of accountability and risk taking.

How well they are actually doing this will not be known until GM reveals its first financial results sometime in mid November.

The company is not making money currently in my estimation.

“We are taking aggressive actions and moving quickly to transform our culture into one that is truly customer focused,” Henderson said.

Based on sales numbers that are available, GM’s performance in the Canadian and U.S. marketplaces remains below the plan outlined in bankruptcy proceedings. This lack of positive business outcomes needs to be reversed before the company can proceed with a planned initial purchase offering (IPO) of stock sometime during the second half of 2010.

Profitability and positive cash flow, as well as share performance will be the key criteria for a successful stock offering. A successful IPO is needed if GM is to begin to pay back U.S. taxpayers, and finance UAW health care benefits.

GM is continuing to implement “fresh-start” reporting, which encompasses the determination of the fair value of its assets and liabilities, by March 31, 2010.

Market share remains problematic in North America.

GM’s estimated global market share in the third quarter was 11.9%, up 0.3% points from 11.6% share in the first half of the year, compared to 12.4% in 2008. The company’s U.S. market share was 19.5% in the third quarter, consistent with the first half of the year.

However, U.S. market share in 2008 was 22.1%, and the three-point drop is a very costly one, and was one of the factors that led to GM’s insolvency earlier this year.

Results!

Results!

Recently, GM’s September share was 20.6%, one of the highest months in 2009, showing that the company’s new products are capturing consumer interest, at least initially. The four core brands accounted for more than 90% of GM’s September U.S. sales.

Henderson reiterated that GM needs an 18.5% share in the U.S. in a 10.5 million unit annual market just to break even under its new structure.

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