GM Calls Bottom To US Industry Sales Trend
01 April 2009 - 9:00PM
Dow Jones News
Executives at General Motors Corp. (GM) suggested on Wednesday
that U.S. industry sales had bottomed despite a year-on-year
decline of more than 40% in March.
The company, facing a May 31 deadline to meet a U.S.
government-imposed restructuring, offered a more optimistic outlook
than rival Ford Motor Co. (F).
Manufacturers all reported an improvement in business at the end
of the month, largely driven by new incentives.
Mike DiGiovanni, GM sales analyst, said the trends "bode well"
for an annualized industry selling rate of 10.5 million for
2009.
"We're seeing some stability in the overall SAAR," he said on a
conference call, noting "the first signs of brightening".
GM's own sales fell 45% in March compared with a year earlier,
but like the top five U.S. manufacturers saw the rate of decline
alleviate compared with February.
Ford executives had said on an earlier call that it was too
early to call a bottom, though economic indicators suggested
improved demand conditions would emerge in around three months.
GM shares recently were down 2% to $1.90. Ford shares traded at
$2.71, up 3%.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com