GM considers increasing production as Cash for Clunkers boosts sales

GM’s CEO and President Fritz Henderson is optimistic about the economic outlook of the auto industry. Henderson feels that the market has hit bottom and that the future looks bright ahead.

“We’re not economists, we’re car salesmen,” Henderson said. “But we see a better situation in the showroom beyond Cash for Clunkers.”

Henderson sights primarily the success of the cash-for-clunkers program, and GMAC’s return to nationwide leasing as indicators of a strong tomorrow, as they have helped increase showroom traffic. While nothing is official, he said that GM is considering boosting vehicle production in the second half of the year as the economy continues to improve.

Henderson noted that OnStar also reports that the number of miles people are driving have visibly increased.

– By: Stephen Calogera

Source: Inside Line