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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

Buick Encore production increased to lift supply by 50%

Trying to zero in on the Buick Encore leads us to the conclusion that the only place it really fits is in buyers' driveways. Every member of its so-called competitive set – we've read everything from the Ford C-Max to the Nissan Juke to the Volkswagen Tiguan to the BMW X1 – is so different in small yet fundamental ways that the Encore neatly slinks between them all, and with 48,892 sales in 2014, it doesn't stop slinking until it reaches consumer garages. That success, and preparation for the aggrandizing of the compact CUV segment, is why General Motors is upping production for the US market by 50 percent. Analysts keep predicting there will be more shoppers for tiny crossovers, and that's why those that don't have them are getting them. Yet the Encore came out in 2013 before people realized the power of the segment, and it has substantially out-performed GM and observer expectations: analysts predicted 18,500 US sales in 2013 and 25,000 in 2015; in 2013 we wrote, "We admit it. We have no earthly idea how this whole thing is going to shake out." It shook out 31,046 sales in 2013, puffing that number up by more than 50 percent last year. GM thinks that this year it will it will go from Buick's third-best-selling vehicle to its best-selling vehicle. GM wants that to continue, what with the Honda HR-V, Jeep Renegade, and Mazda CX-3 on the way. Dealers say they'd sell more if they could get them, and the four-month lead time at the moment between a dealer ordering and taking delivery – about double the normal time – creates a handicap. Plants in Mexico, Korea, and Spain will hive off production to bolster US inventory to keep the "downsizing empty nesters" who love it, happy. Seeing as the coming competition is falls meaningfully outside the Buick's combination of traits, there's a chance its popular tale can continue.

GM laying off 510 amidst slow Cadillac, small car sales

General Motors is laying off about 510 workers from two factories beginning in January, and it could be months before the automaker needs some of that latent capacity to come back on line. A combination of poor sales and high dealer inventories are prompting the cutbacks, according to Automotive News.
The largest changes come at GM's Lansing Grand River plant, where the Cadillac ATS and CTS are made. An entire shift of about 350 workers is being laid off, but the automaker hopes to find positions for some of them at other nearby factories. The decision leaves just a single shift building vehicles there. According to Automotive News, the move is partially spurred by Johan de Nysschen's plan to make Cadillac a more exclusive brand.
The lost shift will likely return for production of the next-generation Chevrolet Camaro at the plant, according to the report, but GM isn't saying when that will be. A previous announcement from the Canadian Auto Workers union indicated that the Oshawa, Ontario, factory would lose the coupe in late 2015 or early 2016.