By William Maley
Staff Writer - CheersandGears.com
April 30, 2013
General Motors is hoping to reverse a trend of losing market share by introducing new models over the next few years.
Since 2002, GM has seen its market share decline at a steady rate, losing 10.5% in that time. This is due to competitors such as Chrysler and Japanese automakers roaring back in sales.
GM believes a onslaught of new products can help them claw back some market share. The Detroit News reports that 70% of GM's product portfolio will be refreshed by the end of this year. That will climb to 89% by 2016.
"The oldest car will be the (Chevrolet) Cruze and the (Buick) Verano, very shortly. So this is all guns blazing," said GM North America President Mark Reuss at the New York Auto show last month.
The product push seems to be working. According to Autodata Corp, GM's market share was up 0.5 percentage points to 18% in the first quarter.
"2013 is off to a very good start for General Motors on both a product and market-share basis. And we're increasingly well-positioned to compete as the economy strengthens and our launch cadence accelerates," said Kurt McNeil, GM's vice president of U.S. sales operations.
Analysts believe GM has a good shot of improving their market share, especially in 2014 when products such as the Chevrolet Impala, Cadillac CTS, and pickups.
"GM definitely has the opportunity to stabilize if not grow market share, given they have a number of new products," said Rebecca Lindland, principal of Rebel Three Media & Consulting in Greenwich, Conn.
"They'll have more product on the ground, less disruption at the plants. That's the year when they can gain substantial share," said Morgan Stanley analyst Adam Jonas.
However analysts say GM better pay close attention to competitors.
"The landscape has never been more competitive, especially in the mainstream as opposed to the luxury," said Lindland.
Source: The Detroit News