GM (GM) management said that industry-wide US sales of cars and light trucks would be about 16.7 million units, down from forecasts of 17 million.
But, GM added, almost as an afterthought, that it was making its own forecasts, an indication that it may be picking up market share in its home market. Based on figures for the first five months of the year, that share is more likely to be coming from Ford (F) than from Toyota (TM).
The statement also offers some hope that the financial performance of GM’s North American unit may be better than anticipated. The company has already taken $9 billion per annum out of its expenses, so any steadying of market share would give the lower cost base the chance to generate an operating profit.
GM is up 35% over the last twelve months. A little light at the end of the tunnel might extend those gains.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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