Boston, MA 10/03/2013 (wallstreetpr) – General Motors Company (NYSE:GM) has a 105 year old history of being in the market. Their recently introduced trucks Chevy Silverado and GMC Sierra have fallen behind on sales. Investors on Tuesday were unconvinced by the company representatives in spite of assurances that their models are not failing. Several stakeholders believe that these tricks were priced high over lesser value.
General Motors Company’s sales had in fact climbed down 11% with the sales of the trucks Chevy Silverado and GMC Sierra reducing by 4100 in number which is 8% decline. Normally these statistics don’t form a cause for worry, but under the circumstances of the product being a new product with cutting edge technology, sales has definitely declined. It has been observed that customers prefer buying older models of trucks from other companies over General Motors Company’s trucks.
In spite of all these unfavorable news, Kurt McNeil, vice president of U.S. sales maintained that their trucks were properly priced for the technology that they provided and the company is still manufacturing more such trucks for its launch.
How General Motors Company plans to increase its sales
General Motors Company is taking lessons from its 10 year old counterpart Tesla Motors Inc. Tesla had reported a market growth of 470% this year. Though General Motors Company’s absolute increase is more than that of Tesla’s its margin was 25%. So General Motors Company’s Chief Executive Dan Akerson and Vice Chairman Steve Girsky have put together an internal team that comprises employees from engineering, product planning, sales and manufacturing divisions to research and analyze Tesla’s new products and processes applied in the company.
Girsky being a realist was heard unusually complimenting his rival competitor, Tesla, in an interview last week, in New York. Also he persisted that instead of shoving any losses under the carpet it is always best to face them and plan countermeasures.
