Daily Management Review

GM lowers sales forecast for the US


06/28/2017


Sales of new cars in the US in 2017 will be range "below 17 million," which may indicate a moderate decline in the industry, told experts General Motors quoted by Reuters.



Robert Couse-Baker via flickr
Robert Couse-Baker via flickr
According to analyst Chuck Stevens, the market is definitely slowing down, it needs to be monitored monthly, and pricing is more difficult now.

Sales of new cars in the US reached a mark of 17.55 million units in 2016 after the boom started in 2010. It is expected that this year the market will mark a jump in sales of new used cars. At the same time, major manufacturers reported a decrease in sales over the past three months.

Earlier, GM said they expect that the volume of new car sales in 2017 will 17 million. Stevens noted that sales could fall by 200-300 thousand this year, but the manufacturer insured itself against a recession by cutting retail sales in large lots, which reduces the liquidation value of vehicles.

"We will remain disciplined in terms of the market," Stevens said, confirming that GM is aimed at reducing supply of its vehicles in the US to 70 days by December from 110 days in June.

The company also expects a higher than expected commission for the sale of Opel to Peugeot SA, which should total $ 5.5 billion, although the previous estimate was $ 4.5 billion due to additional costs.

The company plans to issue short-term liabilities of $ 3 billion to cover the pension obligations that the PSA will take to complete the deal quickly, GM's CFO said.

source: reuters.com






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