GM Expects US New Vehicle Sales This Month to Reach March Growth Rate image

GM CEO Dan Akerson said he expects new vehicle sales in the US this month at the same level as in March, when they were up 3.4%.

“I think they’ll be about what they were in March in terms of year over year growth,” Dan Akerson told reporters on Wednesday.

The US automakers will report April sales results on May 1st. Sales in March increased on high vehicle demand due to an increase in housing construction. So far, auto industry in the US has been stronger compared with the overall economy in the region, as easier availability of credit have convinced customers to begin replacing their aging vehicles.

Analysts predict that new vehicle sales in April would reach 15.3 million units, which would be the sixth consecutive month above the 15 million level. Akerson said that demand in Europe continues to remain weak, a region where GM plans to reach profitability by 2015. He pointed to its rival Ford, which reported a higher than expected profit for the first quarter, but a loss of $462 million in the European market. Ford said it sees a loss of $2 billion in the region for this year, but that a restructuring plan is on track.

Source: Reuters