As concerns rise over the impact on company bottom lines in North America caused by a cyclical downturn to demand there, GM has lowered its forecast for the US light vehicle market in 2017.
GM now expects the US market in 2017 to be in the 'low 17 million' unit range (down from being flat on last year and in the mid-17m range, previously forecast) according to CFO Chuck Stevens speaking in an analyst call earlier this week. The market reached 17.4m in 2016.
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Stevens also said that the market is 'definitely slowing'.
The US light vehicle market is continuing to slow this month, according to analysts at JD Power and LMC Automotive.
The new vehicle retail sales pace in June is expected to be lowest for the month since 2012, according to a forecast developed jointly by the two firms.
Analysts also say that incentives are rising in the US market.
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By GlobalDataIn the same analysts call, Stevens also said that GM expects a higher charge for its sale of Opel/Vauxhall to PSA (up $1bn to $5.5bn) and is planning to issue debt to cover pension liabilities.
Investors have become concerned that the outlook for the Detroit 3 is for lower profits as they negotiate the cyclical demand downturn in the US and the need to invest more resource in expensive advanced tech for electrification and autonomous drive.
US light vehicle market cooling in June
