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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (43914)	1/5/2006 4:31:59 PM
From: TH	Read Replies (1) \| Respond to of 116555

Mish, GM is preparing to launch the largest single platform in North America this spring. The first units are ramping up now in the final stage of preproduction. It is the replacement for the 800 series, which is a common platform for most of the mid and large size SUV's and trucks. As you may recall from one of my posts last year, Bob Lutz went on record with statements that this new program was going to be the stimulus to turn GM around. He was promptly "promoted" to international and Wagoneer stepped in. GM has bet the farm on these new SUV's and trucks, and as I have said, they are very nice, but the MPG is not much better. I have multiple part programs on this new truck line and I revised my annual forecast down by 35% for the company budget. Still nice business for a supplier, but GM's bottom line is based on scale, and not hitting the volume targets will greatly impact earnings and drag out the tooling amortization. GT TH