GM's October U.S. market share seen at 25-year low

Reuters

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DETROIT -- Declining sales are likely to push the U.S. market share of General Motors for October to its lowest monthly level in 25 years, a leading Wall Street analyst said.
GM, Ford Motor Co. and the Chrysler arm of DaimlerChrysler have all had a dismal sales performance so far this month amid general uneasiness about the economy, high fuel prices and the so-called "pull-ahead" effect of big consumer incentive programs offered over the summer, according to Deutsche Bank analyst Rod Lache.

In a note to clients, he said GM was hurting the most, with a dealer survey indicating its October U.S. sales are down 26 percent compared with the same month last year.

If that trend holds, Lache said, GM's monthly U.S. market share would fall to 20.5 percent, its lowest level since at least 1980.

That would mark more bad news for the world's largest automaker, which posted its fourth consecutive quarterly loss on Monday and has lost more than $4.5 billion in North America so far this year.

Lache's sales figures are adjusted for one less selling day in October this year than a year ago. He sees industrywide light vehicle sales coming in at a seasonally adjusted annual rate of about 15.3 million in October, down from 16.9 million a year ago and the lowest rate since August 1998.

October sales of new cars and trucks at Ford are down 23 percent so far this month, while Chrysler's sales have dropped 13 percent, Lache said.

"We do not see the near-term sales picture for GM and Ford getting better in November," he said. He added that December sales were likely to improve somewhat.

 

i think (or at least hope) they realized the employee pricing would sacrifice future sales in favor of current sales.

 

Am I the only that read that and said "well, yeah...."

GM just wrapped up one of the biggest sales promotions in their history, so it would only make sense October's sales would suffer.

The biggest problem is that Wall Street doesn't care about long-term strategy, they just care about getting their buck NOW. Sometimes short-term sacrifices are necessary for the long-term good.

 

My answer to that? "Well, DUH..."

I don't think we've sold a new car all month. Oh wait...we did sell 1 Vibe. Woo hoo. It sucks, but it isn't like we didn't expect it. Glad I only work there 1 day a week...

 

Yep, this is the general problem with the economy in the USA right now. No one cares about long term profitability, it's "are you increasing our market share this quarter, are you making record profits this quarter, etc". It basically forces companies to do unethical and a lot of times damaging things in the long term so their stock doesn't take a huge hit.

 

sales are down everywhere... down at GM the most...

But we need some 0% financing... that would really make things skyrocket...

 

Whoa wait a minute, the title of this thread doesn't say GM sales down 20%, it says GM MARKETSHARE is 20%. I have read in BW that if GM doesnt close 2 plants and keep a 25% market share that the company would tank in 4-5 years. If this trend doesnt reverse in a few months I think its time for the PANIC button.

What happens if GM goes under and the government has to help out. I dont want my tax dollars going to a mismanaged company. I'd want the execs fired.

 

ohh i guess i didnt post my article about government aid... I'll bring it over from C&G...