GM may not have enough new models to win market share this year

Article by Christian A., on January 17, 2011

Analysts say that despite General Motors Co.’s efforts to introduce cars at the North American International Auto Show that are meant to rival the best, it still doesn’t have enough new models to get the widest market share this year.

According to analysts at Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley, the problem with GM's lineup is that it’s older and is inferior to competitors such as Ford Motor Co. They also said that GM doesn’t have enough new cars and its rate of replacement is slow.

Bank of America Merrill Lynch said that the carmakers that have faster rates of replacing vehicles tend to increate their market share and this helps boost profitability. Last Monday, GM CEO Dan Akerson introduced the Chevrolet Sonic at the Detroit show. This is one of the first new vehicles shown since GM had its initial public offering in November.

GM intends for the Sonic and Buick Verano to fill holes in its car lineup and to boost its earnings momentum in its most profitable market.

Jim Hall, principal with consulting firm 2953 Analytics Inc. in Birmingham, Mich., said that GM needs to “use the arrows they've got in the quiver.”

He explained that GM has to focus on marketing. According to Bank of America Merrill Lynch's annual “Car Wars” report published last year, GM's product replacement rate will trail the industry this year and is predicted to be in line with rivals in 2012 and 2013. [via autonews - sub. required]

Topics: gm, united states

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries