GM to Lose Market Share on Lack of New Products, Merkle Says

GM to Lose Market Share on Lack of New Products, Merkle Says
 

 

By Ken Prewitt and Craig Trudell

 

July 9 (Bloomberg) — General Motors Corp., poised to exit bankruptcy as soon as today, will keep losing U.S. market because it lacks new-model introductions for early 2010, according to Erich Merkle, an independent auto analyst.

GM’s only new vehicle slated for that time period is the Chevrolet Cruze compact car, said Merkle, who is based in Grand Rapids Michigan, in an interview today on Bloomberg Radio.

“One product, for a company the size of General Motors with its market share, quite honestly isn’t enough,” he said. “Their market-share results will go lower as a result of very poor product cadence. That’s what happens in bankruptcy. A lot of these products are being canceled or delayed.”

The new GM may emerge from bankruptcy with just four U.S. brands, down from eight. The survivors — Chevrolet, Cadillac, Buick and GMC — accounted for 16.5 percent of the market in June, according to industry researcher Autodata Corp. Detroit- based GM aims for 18.5 percent of the market.

GM is introducing new versions of the Chevrolet Equinox, Buick LaCrosse and Cadillac SRX this year, Merkle said.

“Those products could face some pretty stiff headwinds given the fact that this aura of bankruptcy will still follow General Motors,” he said.

To contact the reporter responsible for this story: Craig Trudell in Southfield, Michigan, at ctrudell@bloomberg.net

Last Updated: July 9, 2009 13:43 EDT
 

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