GM Says It Isn't Concerned Over Falling Market Share, But Shouldn't They?

General Motors Co.'s 17.5 percent average U.S. market share during the first quarter of 2012 hit its lowest level since 1922, according to an analyst report issued Thursday.

But Morgan Stanley analysts Adam Jonas, Ravi Shanker and Yejay Ying said they aren't concerned about the low, and neither is the Detroit automaker.

"The old GM would pull out all the stops to hold onto any amount of market share," according to the report. "The new GM will take good pricing over market share any day of the week."

PLAY - 4/16/2012 10:49:44 AM

+1 Boost

I don't think it really matters. They are profitable and sales are increasing. If a company had a 1% market share but was profitable and was increasing its sales, I would say it was in good shape. If it has falling sales and is losing profitability it would be cause for concern.

Apple is losing market share in the tablets market, but it is selling an increasing number of units and is highly profitable. The market is simply becoming more diverse.

theman440 - 4/16/2012 7:59:47 PM

+1 Boost

Yes it should...

wins555 - 4/17/2012 4:41:43 AM

+1 Boost

GM should be worried. Their goal should be to increase market share and make money on every vehicle it sells. Period.