General Motors’ chief financial officer said on Wednesday that the auto maker has some “near-term” concerns about economic conditions in the US, but expects the company’s revenue growth to continue due to strength in emerging markets.
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According to Dow Jones Newswires, Fritz Henderson said the annual selling rate for light vehicles in the US ran at about 16m during the third quarter which wasn’t terrible but is “well below trend.”
GM reportedly is pleased with its market share performance in recent months, but said economic conditions in the US are a concern near-term.
“The overall pace of economic activity and primary demand is certainly below our expectations and something we certainly need to be cognisant of,” Henderson was quoted as saying during a conference call to discuss GM’s third-quarter results.
But GM expects “ongoing revenue growth” as emerging markets remain strong and also will see the full benefit of the US-market Cadillac CTS and redesigned Chevrolet Malibu in the fourth quarter, the report added.
The new Malibu, a competitor for Toyota’s Camry and Honda’s Accord, has attracted strong praise from US auto critics who recently tried the new model which is offered with 2.4-litre I4, V6 and 2.4 I4 mild hybrid (combined starter/alternator) powertrains.
GM on Wednesday reported a net loss of $US38.96bn, or $68.85 a share, for the third quarter, compared with a net loss of $147m, or 26 cents a share, a year earlier. The huge number was largely due to a $38.6bn non-cash charge related to tax asset valuation.
