Why Investors Should Not Be Too Concerned About GM’s Reduced North America Market Share
GM’s sales growth in North America lags industry wide gains.
However, the top-line continues to grow as average transaction price remains stable.
This is because even though GM lost market share in the passenger car market, its crossovers and truck sales were strong. The latter two are growing faster than the overall market and produce higher margins. Hence, GM’s higher profitability in 2015.
Have more questions about General Motors? Click on the links below:
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- How GM’s European Struggles Are Not Explained By Russia Alone
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for General Motors
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