General Motors Co.’s lineup has been considered as one of the stalest in the auto industry. But the carmaker would not just sit back and watch rivals dominate the market with newer offerings. To prevent that, GM is initiating a product push this 2013 that involves introducing 18 new or refreshed vehicles in the United States this year.
Among these new or refreshed vehicles are redesigned Chevrolet Corvette, Silverado and Impala, which are already gaining ground in US showrooms. These new or refreshed vehicles effectively transform the carmaker’s US lineup into the one of the newest in the industry. This new product barrage has led several analysts to expect a better profit at GM when the carmaker reports its second-quarter results on July 25, 2013.
Even dealerships are hoping a lot too. Florida Chevrolet dealer Steve Hurley told Bloomberg that the third and fourth quarter of 2013 will be very strong for them. Hurley has over 50 orders for the new Corvette sports car. He said that the launch of the Silverado “will be strong enough to create greater awareness for the brand in general."
Last week, Goldman Sachs Group Inc. swapped GM for Ford on its Americas Conviction Buy list, even expecting shares of the largest U.S. carmaker to $45 in 2013 from $36.76 at Monday's close. Patrick Archambault, an auto analyst for Goldman Sachs, remarked that GM will gain higher profit margins because of its new pickups. He added that the US carmaker may even pay a dividend by the end of 2013.
He wrote that they see GM as “one of the most attractive product stories in the sector." The carmaker’s 6.8-percent rise in US sales in the second quarter of 2013, however, may not translate to increased profit for the April-to-June period. According to the average estimate of 13 analysts surveyed by Bloomberg, GM’s adjusted earnings per share probably dropped 15 percent to 76 cents a share in the second quarter of 2013.