General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) are among the top best names when it comes to automakers, but lately fluctuation in the sales have shaken their confidence. Evidence suggests that both the companies have seen major decline in their home market. It is not only the decline that is alarming, but also the increase sales of smaller and newer competitors – something should force the two big giants to rethink and re-evaluate their current business and marketing strategies.
If we look at the existing market, U.S sales for both cars and trucks have risen by 5.5% this year to 12,431,305, making it a remarkable increase in the past few years. Whereas both General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) sales have fallen, General Motors (NYSE:GM) shares have dropped to 17.8% from 18% and Ford (NYSE:F) shares have fallen to 15.1% from 16%. GM (NYSE:GM) has seen increase of 4.3% in sales and Ford (NYSE:F) faced decrease of 0.5%.
The biggest face in the name of existing competition is Chrysler, which has successfully taken business from its rivals. Its sales for eleven months increased by 14% and its market share hit 12.2% from last year’s 11.5%. Currently Chrysler is making strong progress in the market, that its expected to beat Ford (NYSE:F)’s sales next year.
On the other hand Toyota Motor Corp, Ford (NYSE:F) and General Motors (NYSE:GM)’s long time rival has lost popularity due to the Japanese earthquake and recall of over million cars. The sales graph shows very slow progress infact the market share has been flat for nine months. Sales seem to have risen by 5.7% to 1,794,788.
Looking into the line of Japanese competitors, at this point Nissan seems to be ahead in sales and market share. Sales increased by 13% to 1,063,272 units in nine months whereas the market share rose to 8.6% from the existing 8%.
An effective way to evaluate individual company performance is by studying the company’s popular models sale reviews. For the Ford (NYSE:F) series the Ford (NYSE:F) F-Series showed a decline of 0.4% resulting in unit sales of 59,863. At number 2 stands Chevy Silverado, which has shown increase of 5.9% to 50,176; whereas Chrysler Ram sales increased dramatically by 21% with 36,612 sales.
Evaluating Ford (NYSE:F)’s performance, one see a huge decrease in sales of its best selling items, like Escape and Focus. Fusion sales have just hit the market surface.
On the other hand General Motors (NYSE:GM) is facing similar issues with its best selling cars. Chevrolet Equinox sales have dropped in the past nine months; similar is the case with Chevrolet Malibu in comparison to 2013.
Little expectation could be attached with Ford (NYSE:F) and General Motors (NYSE:GM), after their best sellers perform poorly in the market.
At this point, nothing promising seems to be in the near future to change their future. These problems seem to be at a much higher scale in America as compared to other countries.
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