General Motors may have a lot to show off at this year’s North American Auto Show in Detroit, and global sales may impress, but they need to check their market share again; it is still sliding downwards or remaining stagnant, according to a Reuters report.
Despite launching various new product lines, replacing 70 percent of the US sales volume since 2011, the company could not go further than 17.9 percent market share in America this past year. This is the same number they had in 2012 and lower than when they reached top of the market at 19.6 percent in 2011.
Mark Reuss, GM’s new chief of global product development, was frank about GM’s past and its future.
“Market share increases are not instantaneous,” Reuss said. “We’ve got a lot of baggage. Don’t underestimate what people thought of us, or these brands, through these hardships and 30 years.”
Yet despite the market share situation, plant tooling shutdowns and seemingly never-ending marking executive shifts, GM’s recent pricing and incentive methods are putting profit margins ahead of volume. And money talks a lot louder than market share.
“Our third quarter profit margins ran over 9 percent,” Reuss said. “That’s a big deal.”