General Motors Company (GM) And CEO Mary Barra Upbeat On Sales In US
Mary Barra, General Motors Company (NYSE:GM)’s Chief Executive Officer, expects the U.S. Auto Economy to expand and to hit light vehicles sales of 16.5 million to 17.0 million units in 2015. The industry sales reached 16.5 million light vehicles in 2014 and the 17 million mark was last achieved in 2001.
Barra expects return of first-time and younger buyers to drive the most important change. She also attributes the strength of the labor market, strong job numbers, recovery in home prices and ultimately improvising consumer confidence to drive growth for auto industry. Barra mentioned that the U.S. economy and vehicle sales have been improving since 2009 and that there still is plenty of growth opportunities. The sharp decline in crude prices and rising income levels could also motivate buyers to replace their older cars and trucks.
Growth Opportunities for GM
Barra expects General Motors Company (NYSE:GM)’s Chevrolet brand to attract significant customers in 2015 with the brand’s line-up of Spark, Sonic and Cruze vehicles. All three of these vehicle models posted their best-ever annual sales figures in the past year.
The company also reentered the mid-size pickup segment and launched a small-SUV vehicle Trax in December. The emerging small-SUV segment is estimated to grow more than 80% over the next few years in the U.S. Trax has already generated 188,000 sales since its launch in 2012 and is currently available in 67 global markets.
The Macroeconomic Support
Barra also talked about strong real GDP growth and job outlook to support overall growth in the U.S. auto industry during a roundtable with media Thursday, January 8, 2015. According to estimates, 200,000 new job additions are expected per month, driving higher labor force participation and better opportunities for recent college graduates.
A growing jobs market and new vehicle models that offer better technology integration and fuel efficiency provide right opportunity to foster sales to America’s youth.
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