Friday, April 15, 2011
GM needs to aim lower
A decade ago it was still at 35%
Today, GM sells about 17% of the new cars and trucks at retail in the U.S.
GM has had some recent hits. Cadillac products are well designed, well built and sales reflect that. But a better Cadillac isn't going to significantly increase GM's share.
In order to stabilize market share GM needs better product where the volume is, at the low and mid-range of the market. Thus, it's all about Chevrolet.
Yes, it's nice to have a $62,000 CTS-V that will run circles around a BMW M5 on the Nürburgring, a $40,000 Buick that's competitive with other near-luxury sedans, and even a $75,0000 Corvette that makes Porsches run and hide. But until GM convinces the American public that the Chevy Cruze offers a significantly better experience than the Honda Civic, Toyota Corolla, Hyundai Elantra, and Ford Focus; until the Malibu beats the Accord, Camry, Fusion and Sonata, their market share will continue to slide.
All I can say at this point is, "Good luck with that."