GM Forecasts 10.7 Million SAAR for October
October 28, 2009

General Motors predicts the Seansonally Adjusted Annualized Rate (SAAR) of car sales in October will come in at 10.7 million total vehicles, including heavy- and medium-duty trucks. On a light vehicle basis, GM forecasts at 10.5 million SAAR.

GM's top analyst Mike DiGiovanni told reporters Wednesday morning that October may be the first month since January 2008 that GM will report a year-over-year increase in sales and market share. The automaker expects its third consecutive month of market share increase for a total market share of 20 to 21 percent and 19 to 20 percent in retail market share.

"We're not here to declare victory," said Susan Docherty, GM's new vice president in charge of U.S. sales, during the "Straight Talk" conference call. "We're here to report progress."

"I would say that clearly there are signs that the economy is emerging from the worst recession in 70 years," DiGiovanni said. However, he noted that even a SAAR of 10.7 million, which would be the highest this year excluding the Cash for Clunker months of July and August, remains the lowest since the early 1980s.

The GM executives said they are encouraged because 95 percent of GM's October sales will come from the four brands - Buick, Cadillac, Chevrolet and GMC -- that they are keeping; they eliminated four others -- Pontiac, Hummer, Saab and Saturn. A year ago, 85 percent of sales came from the four keepers.

DiGiovanni said GM expected that 95 percent of its October sales would come from the four brands that it is keeping after a bankruptcy restructuring financed by the U.S. government.

GM is sticking with its full-year forecast of 10.5 million vehicles for 2009. -- Michelle Krebs, Senior Analyst and Editor at Large

Posted by Michelle Krebs at 8:09 AM under Analysis , GM | Comments (1) | digg this | Seed Newsvine

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