General Motors Co. (NYSE:GM) erased its past hiccups by making enormous sales, which resulted in the miraculous rise of its stock, eclipsing the mighty Ford Motor Co. (NYSE:F). The past three months were crucial to General Motors Co. (NYSE:GM)rise. Analysts claim that General Motors Co. (NYSE:GM)have been cultivating its rise for over a year or so but that isn’t the case. Even a couple of months ago, General Motors Co. (NYSE:GM)was way behind Ford Motor Co. (NYSE:F) in U.S, even though the former is the largest automobile company in the country. But none of that matter now because General Motors Co. (NYSE:GM)has went past competition.
In U.S the company surged for consecutive quarters, putting it in a formidable position amidst strong rivalry. The company has also been one of the largest car companies in China. The only front where General Motors Co. (NYSE:GM)have been weak is Europe. The car company grew strongly in January in the European region but has waned ever since. That’s something General Motors Co. (NYSE:GM)should be concerned about in the upcoming days. Not being able to make adequate sales in Europe can cost the company a fortune.
One thing General Motors Co. (NYSE:GM)should remember that investors from Europe are largely interested in the companies that make good sales in the European region. General Motors Co. (NYSE:GM)have been failing to do that and that could mean a heap of investors bailing out. Gone are the days when it could only rely upon the U.S market, but that’s not the case anymore. Neither can General Motors Co. (NYSE:GM)find a formidable spot in the Chinese market. There are too much native car companies in China and then there is an obvious influx of companies from Japan.
Now supposedly if General Motors Co. (NYSE:GM)only rely upon its U.S market, the company will find it hard to expand its business and will ultimately lose valuable share holders. That is something the company can’t afford right now. It’ll be a big blow from which the company will find it hard to recover. The European market offers more opportunities than the U.S market, so obviously the European market can’t be neglected. When it comes to sales, the European market is the largest contributor.
General Motors Co. (NYSE:GM)will have to change its fortune in Europe or else it will be taking a big risk by depending only upon a single market. Not even the Chinese market can offer such formidability as the European market. So General Motors Co. (NYSE:GM)will have to find out a way to make way for itself in Europe.
Having said that, the rise of sales in the U.S market is certainly a good omen. But it would be better if the company extends beyond the U.S market so there’s at least a guarantee of sales coming from various domains rather than just the native country. It would fall in the company’s favor if it doesn’t restrict itself to a single market.
