Fritz: U.S. sales must grow

[Slowrider5]

By KATIE MERX

FREE PRESS BUSINESS WRITER

General Motors Corp. Vice Chairman and Chief Financial Officer Fritz Henderson said Tuesday that the automaker can't depend solely on emerging markets to achieve a financial turnaround: GM must fix its business at home.

While GM's sales in foreign markets rose to 59% of its sales last year and the automaker reported sales growth in every region except North America, Henderson said emerging markets can't carry GM.

...he said he is not interested in whether GM sells more cars and trucks worldwide than any other automaker. GM appears to have sold about 3,000 more vehicles than fast-growing Toyota Motor Corp. did last year.

But GM's Japanese rival has reported about $36 billion in profits over the last three fiscal years, while GM has been losing money.

"What I do know is, in profit, cash flow, market cap, we're not the biggest automaker," Henderson said. "I spend my time thinking about that."

More at link: http://www.freep.com/apps/pbcs.dll/a...SS01/801300339

[Kennyboy]

It's a no brainer that GM sales has to grow. In order to sustain profitability, market share has to remain constant or grow.

[K-1]

But GM's Japanese rival has reported about $36 billion in profits over the last three fiscal years, while GM has been losing money.

People call out oil companies for making this kind of dough, so why not Toyota? I'd say they're vastly gouging their customers.

[ChevroletRevived]

GM is turning around; things take time though. I think we'll start seeing significant improvements on the financial side of things going into 2008.

[DuSpinnst]

Originally Posted by K-1

People call out oil companies for making this kind of dough, so why not Toyota? I'd say they're vastly gouging their customers.

Because Toyota fills the world with hugs and kisses.

[atomicshark]

Originally Posted by DuSpinnst

Because Toyota fills the world with hugs and kisses.

Well, they can kiss my a**.

[CobaltSScrazy]

please see this thread to comment to below: http://www.gminsidenews.com/forums/s...ad.php?t=60249

this is true, or if not grow at least maintain 20-25% marketshare...

I LONG for my state to improve its stance internationally...the city of Detroit to turn around, for the people there to elect a leader like Dennis Archer that will work with the suburbs, curb corruption, etc.

Detroit needs three things, NO CRIME, GOOD Schools, and JOBS! until it has that, it will continue to be more of the same.

It pains me to live in this 'get the hell outa MI/ wasteland', heck I just asked my cousin who goes to U-M and another at OU and they both said they'd prob. move and wanted to leave...

Why am I one of a small minority of people who actually care about Michigan, want to live here, want to see it diversify, want profits jobs a GREAT Detroit, etc. ? I just don't get it! erg...



CobaltSScrazy

PS: WHY is Grosse Pointe south of 8 mile, on the Detroit River/Lk. St. Clair and not pay taxes to the city of Detroit? Why aren't they 'part of' the city?

I don't understand why people hate this place sooooo much? and why we collectively as a state can't get it turned around (Other than the fact that we have an idiot politically posturing woman as our governor that has no concept of managing a company or economy...**** DeVos should have been our governor b/c he knows how to run a company and balance a budget, something Detroit and MI can't seem to do. Irreguardless of party, we need someone who knows how to run a big business....and with one of the top 5 Business schools in the country (University of Michigan-Ann Arbor Ross School of Business) you think a FEW of those educated people would help run this state and 'fix it'....

[Robert Ryan]

Why am I one of a small minority of people who actually care about Michigan, want to live here, want to see it diversify, want profits jobs a GREAT Detroit, etc. ? I just don't get it! erg...

After being too Detroit...you really do have huge problems there. It is a shrinking city, that pretty well closes after 5pm. Not good at all.

[tgagneguam]

In another, related article, Fritz is just as candid, which is refreshing and preferable to people blowing smoke up GM's ass. At least he's viewing the turnaround from the proper perspective.

Fritz talks image versus reality.

[63GrandSport001]

I disagree, with 59% of the sales out of the united States and that number will grow in 2008 US will not be as important of a market.

I think that GM kinda needs this as they have royally screwed up their North American operations and now seem to be hooked on selling SUVs and pick-up trucks and as long as their NA operations is run this way they will never ever turn things around in the states.

[mgescuro]

THe problem that Fritz has casually glossed over is the fact that GM has in effect abandoned the North American car market.
They haven't done much to compete in North America until recently. Nor have they given the market sufficiently attractive cars.

Plus the NA market is maturing/matured. Once GM has lost the marketshare, it will not be easy to reclaim. Plus new entrants to the market are coming. It will not be so easy to reclaim.

[63GrandSport001]

If you build solid, good cars that people want then people will buy them.......

[plane]

The sky is falling.
GM will never reclaim marketshare.
Regardless of how good the new products are.
And btw, the CTS is a pile that lacks rich Corinthian leather and flash to pass.

[63GrandSport001]

Originally Posted by plane

The sky is falling.
GM will never reclaim marketshare.
Regardless of how good the new products are.
And btw, the CTS is a pile that lacks rich Corinthian leather and flash to pass.

GM has invested a good amount of money into the full size SUV market and I believe controls some 80% of that market which goes to show that where GM spends its money is where they will do greatly.

The CTS is looking to win over some market share in its segment as well as the new 2008 Malibu once volume get up.

GM was risking doing the same with the Impala but they made the choice that they dont want to dominate in that market.

The plane that i would take for 2008 and probably 2009 as it seems that 2009 will just be another year to where you know you are not going to grow is allow certain products to die off (ones that are in dying segments) and work on rebuilding your products in up coming markets as well as long time established markets. When the market rebounds you are in a great position for market share growth............

[WishIhadatruck]

Originally Posted by 63GrandSport001

...work on rebuilding your products in up coming markets...

I think this is the key to getting some market share back. Certainly having best in class products (and best looking) helps stop market share decline and can even win back market share (such as the large SUV's you mentioned) but coming out with new products in new segments of the market is where you can really capture new customers. If you're innovative and come out with new types of products and are first to market you will definitely win some new buyers. You've got to be first to market with a great product however. The market is always shifting as time goes on to different market segments and into new ones, GM needs to lead.