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Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

370,000 new Silverado and Sierra pickups recalled over fire risk

General Motors announced late Friday that it will recall around 370,000 Chevrolet Silverado and GMC Sierra fullsize pickups from the 2014 model year over a possible fire risk. The recall covers select 4.3-liter V6 and 5.3-liter V8 models, which can evidently suffer engine compartment fires due to the overheating of exhaust components. GM notes that the fire issue may be preceded by a check engine light and an "engine power reduced" message on the driver information display.
Thus far, GM is aware of eight fires stemming from this problem (although only three of those incidents affected customer-owned vehicles), and all of the fires were reported in areas with "very cold weather." GM is urging owners to not leave their vehicles unintended while idling. No injuries have resulted from the fires in question.
The Detroit-based automaker has pledged to start mailing out recall letters on January 16. The fix, which involves software reprogramming, is estimated to be a 20-minute repair, and will be made free of charge.

GM reportedly recalling select 2014 Silverado, Sierra pickups over airbag issue

General Motors is recalling 843 2014 Chevrolet Silverado and GMC Sierra Crew Cab pickups, due to a fault with the vehicle's airbags. According to GM, the airbags may not inflate properly in the event of a crash. There haven't been any crashes or injuries associated with this recall, which is always good. Naturally, repairs will be free of charge, and GM will begin contacting affected owners soon.
GM has a lot hanging on the 2014 Chevrolet Silverado and GMC Sierra. Not only is it banking over $12,000 per vehicle on these trucks, as reported by Automotive News, but GM is counting on the Sierra and Silverado to take the fight to cross-town rivals Ford and Ram. The F-150 and Ram 1500 have been on a tear over the past few years, with fresh updates, advanced powertrains, and plenty of solid press while the GM trucks have been waiting for the 2014-model-year upgrades.
It's still entirely too early to judge the Sierra and Silverado, particularly as those 843 recalled trucks make up barely two percent of the over 40,000 units moved so far. But, as AN rightly states, these trucks are the most important vehicles to come out of GM since bankruptcy, with about 60 percent of global profits relating to pickups and SUVs. Starting an introduction of such a big product with a recall, however small, is not the preferred way to do things.