Signs looking good for the future of the General thanks to China demand
Expert reaction to GM’s potential record share offering from Datamonitor analyst Andrew Jackson:
“GMs striking increase in sales in their second largest market – China – throughout 2010, has played no small part in this recovery, with GM admitting that they are aiming to sell over two million vehicles in the People’s Republic by the end of 2010. This represents nearly 100 per cent sales growth since 2008 and sales achievements that are way ahead of their business schedule.
“Eighteen months have past since the company was delisted and since then we have witnessed the loss of Pontiac, Saturn, Hummer, and most recently, the decision to drop the ‘household’ Goodwrench servicing brand.
“This is evidence that GM has been prepared to do whatever it takes to return to profitability, especially in such a hostile business environment where vehicle sales are only now starting to show a strengthening upward turn.
“GM last posted an annual profit in 2004 and with the momentum that is building within the company, due to improved product manufacture, their continuing success in China and well received halo products such as the Chevy Volt, Buick Regal and 5th generation Camaro, the signs are looking good for the IPO and for the future of the General.”