GM Eyes Uptick in Sales

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GM eyes uptick in sales



General Motors' decline in sales has "bottomed out" and the company is looking to end a four-year slide of U.S. market share next year, marketing chief Mark LaNeve said.
The world's largest automaker is counting on new sport-utility vehicles and redesigned cars, pickups and SUVs to stop the fall, LaNeve said yesterday.

GM will get about 40% of its sales next year from new models such as the Chevrolet Silverado pickup, GMC Acadia and Saturn Outlook SUVs, and redesigned Cadillac CTS and Chevrolet Malibu sedans. This year, it has posted an 8.3% slide in sales through November.

"If we grow a tenth of a point next year, I'll be thrilled out of my mind," LaNeve said.

CEO Rick Wagoner's success with new models through 2007 will determine whether he will rely more on increased revenue or on shedding additional workers and plants to restore profit, analysts have said.

He's already identified $9 billion in cuts after posting losses of $13.7 billion over the last eight quarters. That leaves about $7 billion, in some combination of reduced costs and increased revenue, to meet his financial targets.

GM's market-share forecast "might be a little overly optimistic," said Erich Merkle, an analyst with IRN in Grand Rapids, Mich. "That's a very difficult thing to do."

But Wagoner has more freedom to focus on his own plans after billionaire Kirk Kerkorian decided last week to unload his 9.9% stake in GM. In October, Detroit-based GM spurned Kerkorian's push for an alliance with Renault and Nissan, both led by Carlos Ghosn.

GM's shares, which fell 32 cents to $29.05 yesterday, have gained 51% this year