GM CEO Mary Barra says there is plenty room for the US auto industry to growChris Middlebrooks (Author) Published Date : Jan 09, 2015 00:36 IST
During a meeting with journalists on the eve of Detroit s North American International Auto Show, General Motors Co. CEO, Mary Barra has expressed hopes that the US auto market still has a wide leeway for increased sales and growth and with an improved job market and high-tech cars, savvy youths and adults alike stand a good chance of visiting auto showrooms to check out the latest auto offers.
Barra was also optimistic that GM would be making an average sales of 16.5 million to 17 million units light vehicles in 2015 but then, it must be noted that the company actually last sold 17 million light vehicle units in 2001. However, the industry managed to sell off 16.5 million light vehicles in 2014.
According to Barra, The U.S. economy and vehicle sales have been rebounding since 2009, and we believe there is still plenty of room for the auto industry to grow, and to further establish the importance of economic security to progress within the auto industry, she added that The strength of the labor market, better job security and the recovery in home prices have consumers feeling pretty good about the future, so we expect people will continue to replace their older cars and trucks. The recent sharp drop in fuel prices and rising incomes should only add to their confidence.
Citing positive economic growth and news indicative of improvement within the country, Barra expressed optimistic views on the chances of first-time auto buyers and the return of young customers to the market - and this is largely because strong GDP growth is expected to open up new job opportunities in this new year and to this, it is expected that about 200,000 new jobs would be created every month. This outlook is expected to boost the activity of the labor force in the emerging markets, and new college graduates are not expected to be left out of the bargain for better job prospects.
A growing jobs market and new vehicles that exceed expectations for fuel economy and high technology are the best ways to rekindle the love affair America s youth have historically had with cars and trucks, Barra said.
According to Barra, GM is targeting these younger buyers with mid-sized pickups like the Chevrolet Colorado, as well as small cars like the Spark, Cruze, and Sonic and luckily for the auto company, these vehicles recorded impressive sales in 2014. The company also plans to increase the penetration of the small SUV 32-mpg Trax, which has already sold about 188,000 units in 67 countries since its introduction to the market in 2012.
GM CEO Mary Barra says there is plenty room for the US auto industry to grow