U.S., China And Lower Crude Prices Will Fuel General Motors' Growth

This article was first published by Seeking Alpha on December 22, 2014 .

By Sarfaraz A. Khan

General Motors (NYSE:GM), the second largest automaker in terms of sales volume, has been dealing with the problems related to faulty ignition switches.

So far, the company has received more than 2,300 ignition switch related claims. The company's lawyer has confirmed that 42 death and 56 injury claims are eligible for payment, nearly 300 have been rejected while the remaining are being studied.

Don’t Sell Tesla – Here’s Why

After thoroughly shaking the American automobile industry this year, the electric car maker Tesla Motors (NASDAQ:TSLA) is now out to establish itself in the world’s largest automobile market, China. Meanwhile, the company is eying uptake in production from its California factory as it aims to capitalize on the excess demand. Its recent Q3 report disappointed investors, despite the better than expected performance in terms of revenues and income.

However, its entry in China, its updated production plans, and the expected launch of the Model-E, the mass market vehicle in just 13 months, have shown that the business will continue growing its top and bottom line in the coming quarters. The company is laying foundations for significant growth in domestic and international markets. Read full article at GuruFocus

Ford Could Nearly Double Its Market Share in China by 2015

By Sarfaraz A. Khan and Gohar Yousuf

The U.S. automaker Ford (F) has recently released its U.S. sales numbers for the month of November. Overall sales in the region grew by 7% from prior year to 190,449 units while retail sales rose by 9% to 147,021, which is the highest level for retail sales since November, 2004. Passenger cars sales grew by 6%, while its best-selling pickup in the U.S., the Ford F-Series, delivered another strong performance with a 16% year-over-year increase in sales. In its most recent quarterly results, Ford reported a 12% increase in revenues to $36 billion due to higher sales in the U. S. and Asia Pacific, which offset the decline coming from Europe. In China, the world’s biggest auto market, the company is aiming to increase its market share from 3.2% in 2012 to 6% by 2015. The company will face increasing competition from General Motors (GM) as well as Japanese rivals, but Ford can deliver on its promise due to its massive expansion plans.

Strong Performance In China

Ford was a late entrant to the Chinese market, which is dominated by General Motors as the biggest foreign player in China. By the end of third quarter, Ford enjoyed a ... read full article at GuruFocus

The World's Biggest Auto Market Is Gearing Up For General Motor's Onslaught

By Sarfaraz A. Khan and Mehreen Tanveer

General Motors is planning for a major push in the Chinese market with an onslaught of SUVs and Cadillacs n the back of a massive $11 billion investment plan through 2016. 

General Motors (NYSE:GM) is one of the leading global vehicle manufacturers that not only dominates North America but also the emerging markets, particularly the BRIC nations where it is one of the leading foreign players with significant market share. In its previous quarterly results, GM earned more than 60% of its revenues from North America while the rest came from Europe, South America and other international operations (including China).

(Figure 1)

August Growth: GM and China

In the previous month (August), GM reported its best monthly sales numbers since the global financial crisis of 2008. On an year-over-year basis, total vehicle sales in the U.S rose by 14.7% to 275,847 vehicles while retail sales rose 22.1% to 220,958 vehicles. The sales of crossover, full-size pickups and large SUVs rose 34%, 15% and 29% respectively. Moreover, new product launches and modifications after 2010 of Chevrolet Volt, Chevrolet Spark, Chevrolet Sonic, Cadillac XTS, and Buick Verano have strengthened the company's position.

Meanwhile, China has continued its recovery from the global financial crisis which is translating into increasing demand for vehicles. In August 2013, sale of non-commercial vehicles rose by 11% to 1.35 million as compared to 1.22 million last year, according to data provided by China Association of Automobile Manufacturers.

The 11% growth shows a record increase from 10.5% in July and 9.3% in June 2013. The increasing levels of income and low car ownership rates have propelled the demand of vehicles in the country's … read full article with images at Seeking Alpha.