GM's Market Share Projected At 15 Percent

Edward Niedermeyer
by Edward Niedermeyer

Bank Of America-Merrill Lynch have released their annual “Car Wars” report, and it predicts slumping sales for GM and Chrysler. GM’s market share of 22 percent last year is seen shrinking to a mere 15 percent, which is significantly lower than the 18 percent number that GM admits to. The real butt-clencher? Merrill Lynch based its calculations on a 14m unit SAAR, which is much higher than the 10m SAAR that we’ve been seeing through the first half of the year. Which means GM’s losses could be even worse if we don’t see a return to those sales numbers soon. Even at a 14m SAAR though, the three percent discrepancy between GM’s numbers and Merrill’s would amount to GM selling half a million fewer autos than expected. The report places blame on weakness in GM’s new-product pipeline for the projected drops. GM’s Tom Wilkinson fires back at the Freep, arguing “we understand that analysts get paid to try to predict the future… but that doesn’t necessarily mean they are going to be right.” Gosh, can’t anyone just trust GM?

The Car Wars report also savages Chrysler, arguing that (like GM) a weak product pipline will bring Auburn Hills down. Again. Still. Merrill predicts that ChryCo will be half its size within a few years. Chrysler refused comment on the report, except to say “we have no plans to be half our size in the future.”

Meanwhile, the fact that Ford plans on replacing 99 percent of its lineup in the 2010-2013 window makes Merrill bullish on the blue oval. Ford is projected to pick up about 3 percent market share by 2013, joining Honda and Hyundai/Kia as the top-tier in projected market share growth. Toyota and Nissan are seen increasing their shares as well, although at a slightly slower rate. The European manufacturers should stay about level, according to Business Week‘s take on the report.

Edward Niedermeyer
Edward Niedermeyer

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  • Kurt. Kurt. on Jul 17, 2009

    @Tedj101, "As Ronald Reagan used to say: There you go again. You really don’t get it do you? Those problems you keep talking about are figments of your imagination which has been strongly influenced by vicious rumors started on the internet." Come now, we all know that the internet was created by Al Gore, two Presidents after Ol' Ronny! ;)

  • Dynamic88 Dynamic88 on Jul 17, 2009
    15%. Hmmmm. To put this in perspective, this was where Chrysler used to hover from the 50s into the 70s, when all of the GM partisans used to snark about what a pathetic operation Chrysler was. Not only that, but Chrysler was profitable, at least some of the time, with 15% market share. GM needs to stop worrying about market share. They need to worry about making money on every unit sold. With their current business plan - give away all the profit in the form of incentives - less market share is less unprofitable.
  • ToolGuy I agree with everyone here. Of course there are exceptions to what I just said, don't take everything so literally. The important thing is that I weighed in with my opinion, which is helping to move things forward. I believe we can all agree that I make an important contribution (some will differ, that is their prerogative). A stitch in time saves nine. Life isn't fair, you know. I have more to say but will continue at our next meeting. You can count on that, for I am a man of my word. We will make it happen. There might be challenges. I mean, it is what it is. This too shall pass. All we can do is all we can do. These meetings are never really long enough for me to completely express all the greatness within me, are they? Let's meet to discuss. All in a day's work. After all, Rome wasn't built in a day. At the end of the day, I must say I agree with you. I think you will agree. When all is said and done, there is more said than done. But of course that is just one man's opinion. You are free to disagree. As I like to say...(I am working on my middle management skills -- how am I doing?)
  • Golden2husky Have to say he did an excellent job on the C7, especially considering the limited budget he was given. I am very happy with my purchase.
  • Marty The problem isn't range; it's lack of electricity in multi-unit building parking. All you need is level 1 - a standard 120v wall socket - and if you're plugged in 10 hours overnight you get 280 miles per week or more. That's enough for most folks but you can use public charging to supplement when needed. Installing conduit circuits and outlets is simple and cheap; no charge stations needed.
  • 2manyvettes Tadge was at the Corvette Corral at the Rolex 24 hour sports car race at the end of January 2023. During the Q&A after his remarks someone stood up and told him "I will never buy an electric Corvette." His response? "I will never sell you an electric Corvette." Take that Fwiw.
  • Socrates77 They're pinching pennies for the investors like always, greed has turned GM into a joke of an old corporate American greed.