General Motors sees Brazilian turnaround

The automaker looks to boost market share overseas with the introduction of 9 new vehicles.

By Benzinga Jul 5, 2012 7:21PM
Image: Brazil (© Donald Edwards/age fotostock)By Brett Callwood, Benzinga Staff Writer

Auto giant General Motors (GM) is overhauling its lineup to increase its market share in Brazil.


According to Reuters, GM has launched seven new vehicles in Brazil over the past 12 months, with two more due before the end of 2012.


"Our sales forecasts were wrong for all of the recent launches," senior vice president Marcos Munhoz told Reuters. "Each model sold more than we expected."


The company is hoping to increase its Brazilian market share from 17.4% last year. It hasn't topped that number since 2003, when its share peaked at 23.3%.


Brazil's auto industry as a whole saw a weak first half of the year, Reuters reports, and one trade group has estimated that car sales could fall in 2012 for the first time since 2003.


However, Munhoz is having none of it. He claims that the industry is shaking off the weak sales, and told Reuters he could see growth of as much as 1.5% this year.


GM is focusing on larger and premium vehicle sales in Brazil, bypassing fierce competition at the compact level (the number of brands available has increased from four to 10 since 1990). Unfortunately, the company has been forced to cut roughly 2,000 jobs from two Sao Paulo factories in the last year. There have been threats of a strike from a metal workers union if GM cannot reassure its workers that there will not be further cuts.


It has been a busy week for General Motors. The company is reportedly in talks to resume advertising on Facebook (FB) after declaring the social network an ineffective ad tool last May.


Shares of the company fell less than 1% Thursday to close at $20.54.


More from Benzinga

1Comment
Jul 6, 2012 9:29AM
avatar
LOL...   What can GM brainwash Brazilians into thinking their products  are not junk?   

Dear Brazil, do yourself a favor, and don't buy Government Motors crap.  In the USA most Americans don;'t buy GM's junk, why should you?
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

108
108 rated 1
257
257 rated 2
439
439 rated 3
626
626 rated 4
499
499 rated 5
530
530 rated 6
713
713 rated 7
522
522 rated 8
339
339 rated 9
136
136 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
EOGEOG RESOURCES Inc10
SWNSOUTHWESTERN ENERGY COMPANY10
TAT&T Inc9
COPCONOCOPHILLIPS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.