GM Relies on New Models to Increase Market Share image

GM said it plans to increase its market share in the following years relying on its lineup of new models.

In 2012 GM lost share to its rival Chrysler and the Japanese automakers, which managed to quickly get back on the track after the 2011 natural disasters which affected production. GM said that 70% of its portfolio will be refreshed until the end of this year and 89% by 2016.

“The oldest car will be the (Chevrolet) Cruze and the (Buick) Verano, very shortly,” GM North America President Mark Reuss said in an interview last month at the New York International Auto Show. “So this is all guns blazing.”

Michelle Krebs, senior analyst at Edmunds.com., said that GM has been planning to increase market share since the 1980s but kept losing share, adding that the refreshed Chevrolet Malibu which will be launched this summer as a 2014 model is a poor competitor in the industry’s largest sales segment, the midsize one.

But GM is optimistic as market share during the first quarter increased 0.5 percentage points to 18%, thanks to its all-new 2013 Cadillac ATS. In March GM’s sales increases 9.3% from March 2012 and Cadillac went up 38%.

“We’ve stated publicly that we expect to grow share this year,” Alan Batey, GM’s vice president of U.S. sales and service, said in an interview. “It’ll be a gradual increase.”

Source: The Detroit News