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You be the judge. Will incentives rise or fall?
GM Earnings Quadruple Thanks to Heavy Incentives
Thursday, January 16, 2003 (Reuters)
DETROIT — General Motors Corp. (GM) said Thursday its quarterly net earnings quadrupled due to strong sales of its highly profitable trucks, driven by heavy consumer incentives.
Detroit-based GM, the world's largest automaker, said its fourth-quarter net, including some one-time items, rose to $1.02 billion or $1.71 per share, up from $255 million or 60 cents per share ...
GM boosted its earnings despite the high cost of its aggressive U.S. incentives, which averaged more than $3,300 per vehicle in December, up from about $1,870 in December 2001, according to market research firm Autodata.
GM, which has the lowest structural costs per vehicle sold among the traditional Big Three U.S. automakers, has aggressively pushed consumer incentives to boost its U.S. market share, which rose to 29.2 percent in the fourth quarter from 28.9 percent in the previous fourth quarter ...
But analysts expect GM's North American earnings will drop in 2003 with mounting pension costs, forecasts for falling U.S. sales this year and downward pressure on prices. Last week, GM said its pretax costs from its U.S. pension plan would nearly triple this year to about $3 billion from $1 billion last year.
GM's losses from its overseas automotive operations also narrowed in the fourth quarter. GM's European operations, including its unprofitable Saab brand, lost $129 million compared with a loss $240 million previously.
posted by 64.139.3...
, Thu, 16 Jan 2003 18:33:27
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