Wagoner says Improved Revenue in 2006 will be Driven by Large SUV's

[Black04GTO]

http://biz.yahoo.com/rb/051216/autos_gm.html?.v=1



STERLING HEIGHTS, Michigan (Reuters) - General Motors Corp. (NYSE:GM - News) should see improved revenue in 2006, driven by its new line of full-sized sport utility vehicles and trucks, Chief Executive Rick Wagoner said on Thursday.

"We are going to have a nice start to the year as we build and ship the new Chevy Tahoe, and that should help on the revenue side," Wagoner said, speaking on the sidelines of GM's holiday party in Sterling Heights, Michigan.

Wagoner declined to say when the automaker might return to profitability, but said he was optimistic about the soon to be launched GMT-900 series - a line of redesigned SUVs with better fuel-efficiency.

The GMT-900 series, hailed by analysts as critical to the future of GM, includes Chevy Suburbans, Tahoes and GMC Yukons. Some analysts have called the line the "make-or-break" series for the automaker.

The world's largest automaker has lost nearly $4 billion this year as it struggles with high labor and commodities costs, loss of U.S. market share to foreign rivals and slumping sales of its SUVs - longtime cash generators for the auto giant.

A recent easing of gasoline prices has done little to reverse a shift in U.S. consumer sentiment away from fuel-thirsty SUVs and pickups.

Wagoner said the recent slump in SUV sales was due, in part, to market demand, but mainly because GM had cut back on inventory to ready itself for the new models to be launched next year.

GM, which made its first hybrid power pickup trucks available in 2005, plans to launch its first hybrid sedan -- the Saturn Vue -- next year. The hybrid will compete with popular rivals such as the Toyota Prius and the Honda Civic Hybrid.

Wagoner said he did not know how many hybrids the automaker will make, because of the uncertainty of the size of the hybrid market.

Full article at link above.

[5 watt]

How did this get published, it doesn’t fit the profile. I do expect a push next year, two quarters in the red and two in the black. It is also nice to hear Wagener talking about ramping up production of hybrid models. Hopefully the time and money was well spent.

[wpbharry]

The hosts on CNBC nearly started rolling out of their chairs analyzing this bit of Fairy Dust-impaired comments.

Talk about all eggs in one basket (the 900s).

Wait 'til you see the NAIAS lineup released yesterday. I hope it's preliminary, because of 6 new production vehicles, 4 (the ones announced - Vue Green Line, Tahoe-something-related-to-a-tad-higher fuel-economy, 2 more Escalades), are non-earth-shattering-events and eyes will forget GM until after the Show and then decide it's dead.

[Ming]

GM, which made its first hybrid power pickup trucks available in 2005, plans to launch its first hybrid sedan -- the Saturn Vue -- next year. The hybrid will compete with popular rivals such as the Toyota Prius and the Honda Civic Hybrid.

Wagoner said he did not know how many hybrids the automaker will make, because of the uncertainty of the size of the hybrid market.

I still have yet to see a single Sierra/Silverado hybrid on the roads or at a dealership. If I recall correctly, the number of them produced annually is barely enough to fill one Chevy dealership in Texas, and for half a year after launch they were only available in 3 or 4 states. I wonder if the much touted hybrids from Saturn, etc. will be equally hard to come by, and thus equally bogus in a way.

[sigma]

About the hybrids... Hopefully not. The GMT900's, with their new interiors and improved gas mileage should be able to gain a great many conquest sales. The Aura should also be at NAIAS, and the Camaro should be there, hopefully as well as the new Malibu. Those hybrids should be in full production in 2007. GM better advertise the hell out of them.

[mbukukanyau]

They should keep emphasis on cars too.. Improve Cobalt, Malibu and all the rest. Give the Solstice a hatch.. etc...

[Arizona Slim]

Even though the SUV market is crashing, hopefully GM can ride the buzz of the 900's for at least a year. That should buy them some time until more new car models are out. They need to stay afloat until the new UAW contract in 07, becasue that's probably their last chance to ensure GM's long term survival.

[alerogl2]

SUV sales appear to be crashing because GM is the dominant force in BOF SUVs. Since, their full-size SUVs are in their last year, of course sales are going to appear down...

Fuel economy does have something to do with this, but the new GM SUVs are going to be top of the class in this regard and have top notch passenger accomendations. I don't see why they will not at least maintain share if not gain a little market share. The market will condense slightly but GM is going to have a banner year with these vehicles.

[lytmup]

The banner in that picture reads "GM University - Dubai Campus".

Is that true? There is no reference to Dubai or that picture in the full article (at least that I can find).

Does this bother anyone else besides me to be operating in the land of evil?

[member12]

Originally Posted by alerogl2

SUV sales appear to be crashing because GM is the dominant force in BOF SUVs. Since, their full-size SUVs are in their last year, of course sales are going to appear down...

Fuel economy does have something to do with this, but the new GM SUVs are going to be top of the class in this regard and have top notch passenger accomendations. I don't see why they will not at least maintain share if not gain a little market share. The market will condense slightly but GM is going to have a banner year with these vehicles.

I am curious if the 900s will match their 2002 or 2003 BOF SUVs.

[komododave]

Originally Posted by lytmup

The banner in that picture reads "GM University - Dubai Campus".

Is that true? There is no reference to Dubai or that picture in the full article (at least that I can find).

Does this bother anyone else besides me to operating in the land of evil?

Yeah, whats with Apu in the pic there. He looks like he's getting a scholarship or sumthin. Maybe hes the crown prince of Iranarabia and he just bought the first 100 Yukon Denalis to cart him around his sandbox before he puts them in storage under a sand dune for 20 years.....

[MittarFulgar]

Originally Posted by sigma

The Aura should also be at NAIAS

I don't know what it is you guys think is so revolutionary about the Aura that it will change Saturn so much. Sure GM is shouting about a 6-speed transmission and a DOHC engine, but the main bulk of sales, and the main brunt of the Reviews are going to be about the volume sale version, powered by the same old 4-speed transmission mated to an Overhead Valve engine.

In no possible way will the guys at Motor Trend be as easily tricked as some people were with the Tahoe "6-speed" (that won't be there at launch unless you get a massive engine and expensive trim version of the truck).

The Aura hype is BS. The looks are good but so are the looks of the G6. And the G6 is still judged harshly by critics for its 4-speed transmission and OHV enginesm, and just about every review mentions it.

The LaCrosse was the same. And the Lucerne. All of these GM "revolutionary" cars are hyped with the better engines and then you find out they are too expensive. The engines and transmissions are like Halo Cars, and GM thinks people will come in for that fancy Aura and settle for the main-line pushrod 4-speed version, like the 3800's in the buicks.

Toyota doesn't need gimmicks and switcheroo games. You know you'll get a DOHC engine and a modern transmission in the 2007 Camry.

That can't be said for the Aura. And that is where the Aura loses.

[BlackCadillac]

Originally Posted by lytmup

The banner in that picture reads "GM University - Dubai Campus".

Is that true? There is no reference to Dubai or that picture in the full article (at least that I can find).

Does this bother anyone else besides me to be operating in the land of evil?

Dubai is the land of evil? Why?

[alerogl2]

Well Mittar, I would completely disagree with you anaylsis. The companies that are doing the switcharoo as you call it, are those that require their customers to purchase hardware they simply don't need or care about.

How many average people get their car in excess of 3-4k RPMs? Not many, so the engine differences are not important, infact the OHV performs better at those speeds so it is ultimately the superior engine. Not to mention the fact that it is smaller, lighter and CHEAPER, thus providing a better value to the owner.

GM should and is deploying 6-spds, so that is a moot point. For many engines the difference again is like 5% fuel economy which is good but not critical.

The reviewers tend to always review the top of the line model and that is what GM is catering towards initially it appears. The Aura that will be tested is the 3.6L w/ 6spd, do GM doesn't have much to worry about. And offering such packages makes the car desirable to those that care about such things. (minority)

Critics are just that, critics, lets face it GM is going to get negative press because these folks by in large drive German or sometimes Lexuses and have a liberal form of snobbery against almost anything US. Americans by and large are smarter then these folks and for the most part don't even pay attention. The average consumer looks to design, functionality, reliability, and crash test scores. In all of those catagories GM is doing a wonderful job and should see the fruits of these successes in the coming year or two.

[alerogl2]

What makes Dubai evil? Or as you put it "the land of evil?"