General Motors expects the US new vehicle market to improve in coming months, especially in the fourth quarter, its chief executive said in a magazine interview released on Wednesday, cited by Reuters.
Go deeper with GlobalData
“I think the market will improve further in the next months. The prospects for the second half of the year are clearly better, and the fourth quarter should be strong again,” CEO Rick Wagoner told Germany’s Manager magazine, which will publish the article later this week, Reuters said.
A spokesman for GM Europe confirmed the comments to the news agency.
According to Reuters, Wagoner said he expected industry-wide US car sales of about 16.5 million units this year and of about 17 million vehicles again in the long run, compared with about 16.8 million last year.
Reuters noted that US car makers have been battling weak demand by using incentives and discounts on vehicles, which eat into profits.
Wagoner also reportedly said there was more potential for savings through GM’s joint ventures in purchasing and engines with loss-making Italian carmaker Fiat Auto.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Believe me, all the possibilities are not yet exploited,” he said, without giving further details, according to Reuters.
When asked if Fiat, currently in the midst of a turnaround effort including job cuts and new model launches, was to be saved, Wagoner reportedly replied: “It is not up to me to judge. Fiat still has a relatively high market share in certain countries and a good distribution system. And I know Fiat management is doing everything it can to be successful.”
According to Reuters, he noted the company two years ago decided not to openly discuss an option Fiat has that allows it to sell the remainder of Fiat Auto to GM from next year. GM already owns 20% of the auto unit.
Wagoner also said its European businesses, including Adam Opel, were on the road to recovery, although some work still had to be done, Reuters added.
