General Motors Gives Aggressive Outlook
American consumers are buying new cars and trucks at the strongest pace in years, offsetting car makers' troubles elsewhere and leading the biggest U.S. auto maker to forecast fat profits ahead, reported The Wall Street Journal.
Overall U.S. sales rose 9% last month compared with the same period in 2013 to a nearly decade high. Demand for highly profitable sport-utility vehicles, once scorned as Detroit's gas guzzling cash cows, continues to rise amid low fuel prices and more efficient designs.
SUVs and pickups were largely behind last month's strong gains at General Motors Co. Fiat SpA's Chrysler, Nissan Motor Co. and Honda Motor Co. Only Ford Motor Co., which confronts a change in its truck line, went in reverse during September.
Feeding that appetite for new cars will be key to building and repairing overseas units. So far, the outlook is sound. "A lot of analysts have been beating the drum for the past couple months [saying] that this will soon end," said Fred Diaz, Nissan's U.S. sales chief. "I don't see it."
U.S. buyers' role in financing the future at GM and Ford were clear despite the contrasting visions laid out this week by the chief executives at the two biggest U.S. car makers. GM CEO Mary Barra pledged to get near 10% operating margins in North America and to halt losses in Europe by 2016.
Her crosstown rival, Ford CEO Mark Fields, is projecting long-range margins just shy of GM's and using North American profits to finance a global market share push that seeks to tap Asia's emerging markets and revive its faded luxury brand.
Mr. Fields' plan hit a sour note with investors, sending shares to six-months lows over guidance for short-term profit declines, much of which is due to troubles in emerging markets.
GM shares gained 1.7% to $32.49 Wednesday on Ms. Barra's plan, but remain below the $33 price fetched in their 2010 initial public offering. GM's market value is nearly $53 billion, trailing Ford, Toyota Motor Corp. 7203.TO -2.85% and Volkswagen AG VOW3.XE -2.25% .
Simplification is the cornerstone of the visions presented this week by Ms. Barra and Mr. Fields. GM and Ford, long criticized for running sprawling businesses where executives weren't challenged to collaborate, both are rushing to lower the number of vehicle platforms that provide the underpinning for the cars in their lineups.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →