President Barack Obama has always stood behind the 2009 bailouts of General Motors and Chrysler and he was vindicated as both companies made a surprising recovery in a very short time period.
While Chrysler is out of the picture, the U.S. government still holds a 32 percent stake in GM and is searching on how to implement an exit strategy without losing a large portion of the S$51 million it poured in the automaker during the bailout.
Analysts believe that the 2014 Chevrolet Silverado and GMC Sierra full-size pickups that were unveiled this week may provide the administration with the way out that it needs.
The reason is that combined sales of those two trucks accounted for 23 percent of GM’s total 2011 sales and generated 16 percent of its global earnings before interest and taxes this year.
These were the old versions that dated back to 2006. It’s reasonable to expect that the revamped Silverado and Sierra, which have retained their rugged looks but are significantly improved under the skin, can do even better.
Citigroup analyst Itay Michaeli told Bloomberg News that the launch of a new pickup “tends to correlate very well with positive stock returns for GM”.
“It’s really hard to find a product for GM that’s more important”, IHS industry analyst Rebecca Lindland told the news agency. “From a volume and financial standpoint, this is GM’s Super Bowl.”
GM shares have increased 24 percent so far this year. In order to reach the US$33 IPO price that the U.S. Treasury Department wants in order to sell its stake, it must gain 31 percent.
If the administration wanted to fully recuperate its initial investment, the share price should reach US$50. Of course, under the current climate that’s nigh impossible so the main target is to offload the shares by minimizing losses.
Thus, increasing sales of the revamped Silverado/Sierra duo will provide both parties with a win-win scenario: not only will GM’s profits rise but will (baring any unexpected event) also help increase its stock price, helping the government offload its shares.
Company executives are buoyant about their new product(s): Jeff Luke, executive chief engineer for full- size and midsize trucks said that the new pickups “will once again raise the bar in the full-sized truck segment” as they will feature improved fuel efficiency, horsepower and torque along with better comfort and functionality.
By Andrew Tsaousis
3 Comments:
New and yet they still leave that ugly Sirius/XM disproportionate antenna on top of the roof. If you can't hide it, the least you can do is center it. No LEDs in mirrors.
Brand loyalties aside, these are very good, hard working trucks with years of good track records behind them. For those, like myself, who need an HD chassis for even greater towing capabilities these trucks really deliver. Toyota has yet to offer a truck that could be considered in such cases.
OH YEA BABY ! I LOVE the 2014 GMC. Sweet, fresh, & changed just enough.
(Look at Toyota,can't make a uglier truck if tried). Most of you NANCY BOYS
try to make up for a lack of something with your trucks, (like trying to look
cool at red lights trucker hat on slight angle,hand draped over steering
wheel,looking to see who is admiring your truck). If your half way handsome
ya don't have that problem. I don't think they needed to 100% redo styling
anymore than they did. Ah, Super Duty Ford can you say OVERKILL !
Or Ram, trying to look like Billy Big-Rigger? Class is when it's not screaming
"look at me". It is refined like a fine sports car, no overkill. Thanks #1.
President O'Bama. #2. Thanks Gm. Another RELIABLE,nice looking truck.
Look at the sight showing the 2013 GMC next to the 2014. Headlights look
like fine jewels, like on a luxury car very classy. I don't need a huge snoot
on my truck so people look in rear view mirror think "Oh my GOD, I'm being
chased by a Dinosaur", as the idiots are 2 inches from their rear bumper.
I also haul all trucks on market on my car carrier & get in & under them,
cram them on & tie them down big time, so I know what can take the
stress tests & how they handle & are built. All trucks have come a long way
in last 2 decades, but if you had to pin point when quality took over, it had
to be GM'S 1988 line of trucks in 1987. In 1994 Dodge had to try & copy
the big rigs & by 98-00 (the worst style of all time), Ford then copied.
No, my pick up does not need to look like my Semi. Like a man wrote,
some men are trying to make up for a small human Male body part they
are lacking or looks. I want women to look at me, not my truck. Thanks GM.
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