GM Inside News Forum banner

1 - 5 of 5 Posts

·
Registered
Joined
·
2,231 Posts
Discussion Starter · #1 ·
GM fears share slide
Automaker hopes for 4th-quarter comeback
By Eric Mayne / The Detroit News

LOS ANGELES — Still dogged by a dismal first-quarter sales performance, General Motors Corp. will need a miracle to see a gain in U.S. market share for the third consecutive year, Gary Cowger, the automaker’s North American president, said Monday.

The automaker’s U.S. sales have decreased 1.7 percent through November while overall industry sales have dipped 0.6 percent, leaving GM with a market share of 27.8 percent, compared with 28.1 percent in 2002.

“We had a huge close last year. But (because) we really had, quite frankly, a poor first quarter, it will take a heroic effort this last week in December,” Cowger said.

GM has not established a market share target for 2004, Cowger said after delivering a speech opening the Los Angeles Auto Show, where the Chevrolet Cobalt small car, BMW 645Ci coupe and the Acura TL A Spec concept sedan debuted Monday.

If GM were to realize an increase in market share — however small — it would continue a streak begun two years ago — gains realized in a market populated by more players, offering an increasingly wide array of products.

(Full article here)
 

·
Registered
Joined
·
8,856 Posts
It's one thing to achieve a three-peat through enormous incentives, and it's quite another to do so without. IMO, in the short-term it may matter to the psyche of GM personnel whether or not they achieve market share gains this year, but in the long-term it seems like it will be less important for a three-peat. I think that there's a [remote] possibility that they may see an increase in share, but any victory will be excused as "Yes, but it required huge incentives." And I tend to agree. Huge incentives meta-communicate that their product is cheap and can only be sold based on price. This is not true.

GM's quality is higher than ever ("even" higher than many vaunted Japanese makes!). The same can be said for FoMoCo, too. It really chaps my a$$ when ignorant consumers say idiotic things like "I bought my Mitsubishi over the Chevy because the Chevy's quality sucks." While this may have been deserved in the past, I think that it's inaccurate to say that today. I think that GM has been sufficiently punished for the garbage it called cars and trucks in the 80's and 90's. It's time to move on.

GM is [finally] putting much more of an emphasis on refinement. To be sure, there will be missteps along the way (I submit the Ion as one example), but there appear to be far more triple hits and home runs (large and medium utilities, full-sized pickups, Corvette, 9-3, and CTS, and I predict the G6, XLR, Cobalt, and Malibu will do well), which at their core are fabulous automobiles.

When the Japanese came to the US, they faced [undeserved?] skepticism about their vehicles. As they continually improved their vehicles (OVER TIME), they gradually increased sales as people came to appreciate the quality and refinement of their vehicles. Now, they are in a position to charge a premium for their vehicles, which translates into healthy profit margins, bulging market capitalizations, and increasing share. It's a simple formula, actually; it just requires a huge commitment, discipline and patience. I hope America's triumvirate, in particular GM, stays the course of a long-term outlook. American business executives seem to be painfully preoccupied with next quarter's results.

Short-term sacrifices (a few tenths of share this year), will result in longterm gains (profitable share increases in the coming years) as GM [hopefully] consistently improves its vehicles.

To me, this short-term three-peat issue is essentially irrelevant.
 

·
Registered
Joined
·
18 Posts
Has anyone ever looked at what market share would have been if GM still had Oldsmobile? 4-door Sunfire (in US)? Etc...?
The new launch of vehicles (Malibu, Maxx, Cobalt, Colorado/Canyon, STS, Equinox...) will probably tell a more accurate story (marketshare) for GM.
 

·
Registered
Joined
·
7,840 Posts
Splitting the pie into six peaces or twenty I mean with names like Kia Hyundia and even Mazda Volvo and Saab getting more into the picture with more product it is hard for any name to keep up. I think GM and Ford with high percentage of repeat customer are doing finne in a market that is forever growing. (DC I don't really know whose customers they are after). So keep up with the good work on quality and bringing the customers what they want. The numbers will work themselves out.
 

·
Registered
Joined
·
112 Posts
I think also the thing we tend to forget right now is that alot of the current 2003 GM products are going to be replaced soon in 2004-2005 plus Gm hopes to increase sales of companies such as SAAB, Hummer and Caddilac in the very near future buy bringing in a boat load of new models in. I truely don't us gaining much steam till the end of 2004 to be honest. By then we have the STS, HHR, Colbalt, Malibu Maxx, G6, C-6, H-3, Solistice, and a slew of other very promising cars to the table.

We also have to realize that GM will soon buy Fiat *and some other choice European cars comp. that go with it* and once that happens I really don't think that Toyota has even the slightest chance to ever be the #1 auto company.

And to those that think that the Japanese auto companies build better cars, just work as a mech. or detailer or anything related to working with vast amounts of different cars and you will quickly notice that the domestics are on par with the imports. The worst build quility I've seen lately are diffenitly the new Nissans especially the Maxima. Working as a detailer you really get to see the ins and outs of the car and man did they ever throw that Maxima together. Same for the Quest :rolleyes: .
 
1 - 5 of 5 Posts
Top