Thursday, January 15, 2009

Car Crash

General Motors released its estimate of 2009 car sales: 10.5 million vehicles. That estimate includes all cars sold in the US. However, the estimate omitted the number of cars GM expects to sell. As we know, estimates are prepared for each model.

Where are the numbers?

Meanwhile, it's early yet. Undoubtedly the full-year estimate will decline as credit limitations lead to continuing sluggish buying during the year.

If Detroit wants to survive, it had better slash prices and slash its cost structure down to a size the car market will support.

GM cuts US sales forecast
General Motors reduces its industrywide US sales predictions for 2009 to 10.5 million units

Thursday January 15, 2009

NEW YORK (AP) -- General Motors Corp. is cutting its 2009 industrywide U.S. sales forecast to 10.5 million vehicles.

The Detroit automaker previously said it expected industrywide sales of about 12 million for the year, with 10.5 million seen as a worst-case scenario for the industry. It revised its prediction in an analyst conference Thursday where Chief Executive Rick Wagoner is speaking.

U.S sales fell to 13.2 million in 2008, down 18 percent from 16.1 million in 2007.

Many analysts have been predicting sales of 10.5 million to 11.5 million in 2009.

General Motors is also projecting 2009 global sales of 57.5 million units.

GM says the lower sales outlook will force it to make hard decisions that will result in a stronger viability plan and better position the company for long-term growth.


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