Report – GM sets high goal for upcoming Malibu image

The Chevrolet Malibu has been for decades a symbol for the largest US automaker –not just for positive facts, but also for the competitiveness issues that derided from 20 years of body stiles that were often seen as boring.

Now the third-biggest world carmaker has predicted the upcoming refreshed model of the midsize car will finally bring a much-delayed sales spree. Three persons from supplier ranks have reported to Reuters that GM has already advised its parts makers to be prepared for increased demand for the redesigned variant, mulling North American deliveries of around 250,000 units annually, which would mean a 25 percent jump on previous year’s level. The carmaker also asked the suppliers to be prepared if GM goes as high as selling 300,000 Malibus in a given year. That would be a serious surge from the forecast delivered last fall, when the firm said it was gearing up for sales of 225,000 units in 2016.

The company also expects the profitability of the new model to go up, by around $1,500 per car more than its forbearers. Summing up the predictions, GM could see profit from the Malibu rising by more than $450 million, with the car scheduled for introduction at the upcoming New York auto show next week. GM aims to gain a larger consumer base with the new Malibu by setting up front the model’s increased quality, better styling, fuel-efficiency, and all that complimented by numerous safety and connectivity features. The Malibu is also one of the crucial steps in GM chief executive officer’s Mary Barra strategy to lift profit margins to 10 percent in North America, with a global return on capital of 20 percent.

Via Reuters