GM Gains, But Weaknesses Remain – BusinessWeek

Business Week:

GM Gains, But Weaknesses Remain – BusinessWeek.

GM has also been crowing about its newest models, especially its important family-oriented sedans and SUVs. Crossover SUVs like the Chevrolet Equinox and Cadillac SRX both sell for at least $4,000 a vehicle more than the models they replaced. The Buick LaCrosse sedan sells for $9,400 more than the old model.  Docherty says GM has added third shifts to the plants that build the Chevy Malibu, LaCrosse, and Equinox and GMC Terrain SUVs. When the company gets up to full production for those new vehicles, “we can get market-share increases,” Docherty said.

Apparently GM is at 53% of plant capacity overall, which is bad.  However, they have burned off a ton of inventory and taken a deep breath toward holding the right number of days of inventory in the system instead of thousands of cars in float.  I am cautiously optimistic that these are good signs that GM is headed into profitable territory.

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