October saw the first monthly sales gain in almost two years for GM, according to Detroit News. The Detroit automaker has slashed costs by almost $30 billion and has brought itself to a pot where it expects to start repaying federal loans next month.
These are all great signs, but in order to post a solid comeback, GM has to work on reclaiming sales and market share losses, and reshaping buyer perceptions so that they will look past the bankruptcy. They must also get their management team set in place and deliver on a number of promised products, including the Chevrolet Volt, Cruze, Camaro, Buick Regal, and Cadillac CTS Coupe.
GM has also been aggressive on the marketing front, as they have recently appointed Julie Heisel to lead a customer retention project geared towards those who have bought from brands and dealerships that have been closed or phased out. They are also focusing on measures intended to improve the resale value of their vehicles, one sticking point that drives purchasers away.
Despite the the bankruptcy, GM’s global market share is on the rise, but they need to put out hot products as they brace for a drop in global industry volume from 67.8 million units to 65.4 million units this quarter.
-By Stephen Calogera
Source: Detroit News