Monday, August 22, 2011

GM uncertain that US sales are car meet forecast.

DETROIT - the top executives at General Motors co. has doubts, whether U.S. car sales recover this year as expected, even as the stock market recovered a bit Tuesday from his huge losses.

In conversation with industry analysts about GM longer-term financial plans Tuesday, GM Chairman and CEO Dan Akerson said the company is sales forecast sticking with his U.S. of some 13 million cars and trucks for the year, but he's not sure will make sales, that high.

"There are a lot of uproar in the business and turmoil means uncertainty", said Akerson. GM finance, saying, are strong enough to "make by these dips" in sales.

The statements came in the midst of optimistic predictions for the future of the company, which has made billions of bankruptcy protection just two years. Analysts said, that GM is looking in the future more efficiently too, so that it can make even more profits, and that it plans to plant capacity by 45 percent in Brazil, Russia, India and China until 2014 expected sales growth use to increase.

Company executives comments on GM second annual global business conference. U.S. stock market slide / international government debt problems were hardly mentioned during the presentation, which lasted more than four hours.

GM shares have lost since November first public portfolio offer more than 20 percent of their value, although they recovered somewhat with the rest of the market on Tuesday. GM closed up 97 cents, or almost 4 percent, to $25,54.

During the presentation, GM executives said cost-cutting measures, halving the number of frames, making it its vehicles to all around the world contain bases. In 2010 GM had known 30 frames, which in the film industry as platforms. By the year 2018 plans cut it, this number to 14. It will also sell more cars and trucks built on these platforms all over the world, production, engineering and design costs saving. The company also plans to reduce the number of engines, which it developed, as well as reducing the number of the parts that it used all over the world.

"There are a lot of complexity." We need to make it easier, "said Akerson." "More of our components are common and more of our vehicles are global architectures."

GM said only 6 percent of cars and trucks are now made of global platforms. She will rise to 90 percent by the year 2018, as the company tries to catch up with industry leaders.

Ford Motor Co., for example a similar effort began four years ago, and it is on the way, its global platforms on 12-13, cut according to a research note Bank of America Tuesday published. Ford had 27 platforms in 2007. Ford is to create in the year 2013 83 per cent of cars and trucks from global platforms.

GM executives said the company plans to keep its annual investments consistent even when car sales are down. Save money, ending the practice of the projects start and stop. GM product development Chief Mary Barra estimated that slowdowns, cancellations and other turbulence of the company costs $1 billion per year was have.

Barra said the popular GMC financial problems were delaying terrain, Buick Enclave and Chevrolet Equinox crossover of almost two years due to the GM during the middle of the 2000s. Now they are under the company's strongest sellers.

", Which only underlines what we can do if we have this challenge," she said.

Barra would not say exactly, how much the company by cutting platforms and other changes will be saved.

GM earned $5.7 billion in the first half of 2011, but the company said last week that it expects results to "modestly reduce" in the second half due to the seasonal drop in sales and possible increase in the incentive spending. Last week, GM reported its sixth straight profitable quarter from April to June, in which the net income of $2.5 billion. The company slashed 2009 brands, plants, and debts to its bankruptcy restructuring.

Akerson, said GM is set to break even at the low point in the sales cycle vehicle, and can be even more profitable, if car and truck sales recover all over the world.

"If the market are restored, we should be able to really use it about what you've seen so far", Akerson said.

GM remains - joint venture of the Government, which took a share in the car manufacturer in the framework of a 50 billion dollar rescue package. The Government sold some of his interest in November in the framework of the GM initial public offering, but still holds 500 million GM shares. The Government must recoup$ 26.4 billion to its full investment in GM, importance of GM shares would have to sell $53 per share for about.

Chief Financial Officer Dan Amman said that the company will not ordinary payment of dividends talk or buying back until early next year, after it better knows what will happen to the economy. Both could boost the company's share price help.

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AP Auto writer Dee-Ann Durbin contributed to this report.

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