GM Sales Forecast Lasts Seven Days

Robert Farago
by Robert Farago
gm sales forecast lasts seven days

I had to check it myself. Yup. On January 15, General Motors lowered their sales forecast for 2009 from 12m units per year to 10.5. Today, seven days later, Bloomberg reports that The General reckons sales will fall below 10m. “There are a whole bunch of different forces at work,” GM sales analyst Michael DiGiovanni said in a conference call. For that he gets paid? Bloomies tries to fill in the blanks– and falls back on data. “Dwindling consumer demand will further reduce revenue for automakers in the U.S. already reeling from an 18 percent drop in sales last year to 13.2 million cars and light trucks, the fewest since 1992. Monthly annual selling rates have exceeded 10 million units since a 9.8 million pace in August 1982, according to Autodata Corp. of Woodcliff Lake, New Jersey.” And then they give up on GM, preferring to quote the eminently, endlessly loquacious AutoNation jeffe Mike Jackson. “Industry sales are at depression levels of 10 million” Jackson told Bloomberg TV. “The industry is going to need further bridge loans to get through this turmoil.” Hmmm. Did GM lower its forecast to pump-up the volume on the “too big too fail” (a.k.a. it wazzunt me) rhetoric?

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  • on Jan 23, 2009

    TEXN-Noone could have foreseen the collapse of the Financial institutions. People tend to forget that without lending to the customer most purchases are not made. But back to the real reason the USA economy faultered is due directly to American job loss and then foreclosures and then defaults and then the banks and then the economy. So when we trace back the initial problem its job loss and it was caused directly by the flooding of the markets by foreign goods and this in turn undermined American businesses and then the employees which were the homeowners and car buyers.

  • on Jan 23, 2009

    The USA is in a deep recession heading for a depression. Cause-UNFAIR trade practices FIX-TARIFFS

  • Sherman Lin Sherman Lin on Jan 23, 2009

    Just so you know scartooth traditional tarrifs work like this. Products manufactured outside of the country are taxed and those made in the country are not. Guess what the Toyotas and Honda etc made in the US would not be taxed. You don't want tarriffs you simply want your competition taxed. Sorry Mr GM management man you'll never get that in a million years. We might someday go back to tarriffs on imported goods but we will never go to a system to simply tax your companies competition if they actually make the products in the good ol USA. By the way the Americans working in a factory of a foriegn company value their jobs every bit as much as the workers at GM. (and no I am not one of them)

  • Ronin Ronin on Jan 23, 2009

    Predictions of the predicaments, exposure, and risk of the lending institutions have been made constantly for the last decade, although you won't see it on MSNBC. This was not a surprise. Likewise, Chevy's introduction a couple years ago of its great hope, the magic sword that would save the company: The new Silverado. Fantastic predictions that this would save everything. At precisely a time when gas prices were expanding and small cars the big thing. There is an entire history of bad market decisions and arrogance from GM. People will write B-school term papers on the subject. It was inevitable, held off by questionable practices. And it continues: The GM Card extra pull-ahead bonus announced last week: It only goes to some cardholders. The rest get squat. Who knows how they determine who gets it and who does not. In an era of instant publicity, this is a huge disincentive for the deliberately unselected cardholder to buy. What a turn-off for them- their neighbor gets a discount, they do not, and no one can explain why. yes, this has been foreseen for years. And you cannot blame the "US Economy" as an excuse. It is the job of executives to manage the company whatever the economic environment, good or bad. This is exactly what they are paid for. The fact that the economy is bad absolves them of nothing, it's just an excuse they give to try to defer responsibility from themselves. Meanwhile, of course ,they still collect their millions.