GM claims to be calibrated to break even at a Seasonally Adjusted Annual sales Rate (SAAR) of 10m sales. Which assumes that GM’s portion of those sales will remain steady. As we’ve learned today, that’s not likely. GM’s market share is being pummelled by bad news, bailout backlash, and (according to the Merrill Lynch report) poor product replacement rates. While GM talks up the Volt, discusses a Prius fighter and touts an American-made compact, its major product push has been centered around a single dying brand (Buick) and its single new product, the LaCrosse. Yes there’s a new Equinox, but has anyone noticed? Camaro may be the choice of bold, audacious lemmings everywhere, but for how long? It’s gut check time . . .
If August sales don’t pick up (and they won’t), the SAAR won’t top 10m this year. If GM keeps shedding market share, it won’t last. Come the fall sales doldrums, The General will have to face the reality of another squandered year (this time brought to you by the American taxpayer). If it can’t drum up any enthusiasm for its 2010 IPO, we’re looking at more federal bailouts by this time next year. On top of the inevitable dealer payoff. And, as usual, GM’s bright and shiny future is still just out of reach.
5 Comments on “Daily Podcast: Doom, Unaverted...”
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No worries, then.
We’ll just print more $$$ and send it over to Motown.
When will we have a “Dollar Printing Czar?”
Attractively priced, superior cars are widely available. GM prices will have to reach giveaway levels before consumers will spend their own money on substandard, risky products.
Sales could be 12M units & GM still wouldn’t be any better off as the 2M extra wouldn’t necessarily be GM products sold or even their percent of market of it.
As for the Volt, too late and not even in the game for now. My mom’s eye doctor got a Fusion hybrid.
The Camaro SS recent manual trans woes don’t help either as word gets around.
dgduris +1
Our version of Zimbabwe bucks to the rescue.
I knew I should have squandered everything I had on good times – you can’t reduce the value of those memories like you can the value of our new ObamaBucks.
“We’ll just print more $$$ and send it over to Motown.”
We don’t print the money. A private cartel does.
http://www.youtube.com/watch?v=lBZne09Gf5A