GM and Chrysler will lead automakers to gushing profits

Article by Christian A., on October 25, 2010

When annual US sales reach 15 million vehicles, General Motors Co. and Chrysler LLC will lead automakers to “gushing profits,” according to Steven Rattner, the former head of the federal government's auto task force.

On Bloomberg Television's “Surveillance Midday with Tom Keene,” Rattner said that GM will be able to make a profit even with fewer US vehicles sold because of GM’s move to cut costs and liabilities during its 2009 bankruptcy proceedings.

Rattner said that the industry underwent a restructuring in order to make money.

Furthermore, Rattner believes that the recovery of the auto industry is slower than had been predicted but that it will later return to a rate of 15 million a year.

Researcher Autodata Corp. said that US automakers in September sold vehicles at a rate of 11.8 million, a marked increase from the 9.4 million units sold the previous year.

Rattner explained that an annual sales rate of 15 million vehicles is necessary “simply to accommodate new drivers and the aging of the fleet.”

However, Rattner didn’t indicate a time frame of when to expect this pace in the US. [via autonews - sub. required]

If you liked the article, share on:

Comments

Recommended

This is the time of the year when automakers give us teasers and previews of their upcoming models. Now, it seems like BMW is ready to unveil the M5 (F90)...
by - August 22, 2017
It is quite common to revive classic cars if you have a lot of extra money. Models like the Jaguar XKSS and Aston Martin’s DB4 GT have been upgraded to...
by - August 21, 2017
Famous designer of certain Ferrari vehicles like the Enzo Ferrari and the P4/5, Ken Okuyama has revealed another one of his designs at the 2017 Pebble Beach Concours over the...
by - August 21, 2017
The current generation of the BMW M3 (F80) sedan isn’t just sporty and luxurious in terms of looks, but also in terms of performance. Because of its athletic appeal, the...
by - August 21, 2017
A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 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