GM turnaround plan assumes more than 19% U.S. market share

Article by Christian A., on August 26, 2010

General Motors Co.'s restructuring plan is based on the assumption that it is capable of maintaining slightly more than 19% of the U.S. market. The remarks were taken from Board member Stephen Girsky who spoke during a panel discussion at a conference at Columbia Business School.

Girsky, who joined GM's 13-member board as a representative of the UAW when the automaker emerged from bankruptcy in July, said, "The public plan is 19% and change."

This was Girsky's response when asked what GM's market share would be in three years. GM's share of U.S. sales had peaked at 51.1% in 1962.

The restructuring plan announced in May was based on maintaining an 18.5% share this year. GM held almost 29% in 2002. And in the third quarter, GM had 19.5% of the U.S. auto market.

Girsky, who was an independent consultant and former Morgan Stanley analyst, said there is too much capital tied up in the automobile industry.

He explained that automakers borrow money from their dealers, their suppliers, their employees and their retirees. Meanwhile, the costs of closing down capacity are high and the cost of entry for new competition is going down.

Topics: gm, united states

If you liked the article, share on:

Comments

Recommended

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
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 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