By Katie Merx
Aug. 28 (Bloomberg) -- General Motors Co., the largest U.S. automaker, said it expects the industry’s sales to rise 15 percent to 12.1 million next year as government stimulus programs help restore consumer confidence.
GM forecasts U.S. deliveries of 10.5 million this year before the increase, Brent Dewar, head of the Chevrolet brand, told reporters today in Novi, Michigan. Klaus-Peter Martin, a spokesman, provided the percentage estimate. Sales in 2008 totaled 13.2 million cars and light trucks.
“All of the global stimulus programs have had the impact of moving inventory and building consumer confidence,” Dewar said. The U.S. government’s “cash for clunkers” program boosted purchases this month, he said. Even with payback expected in September because the offer pulled some sales forward, GM expects continued improvement, Dewar said.
A stronger U.S. market would help GM Chief Executive Officer Fritz Henderson, who is under pressure to increase domestic market share and return the company to profitability. GM exited bankruptcy with U.S. aid on July 10.
The federal government’s $3 billion auto incentive program produced almost 700,000 sales, the Transportation Department said on Aug. 26. New-vehicle buyers got credits of as much as $4,500 for trading in older, less fuel-efficient models.
Dewar talked to dealers in Novi today, as GM managers meet with the retailers to talk about sales expectations as the Detroit-based company prepares to cut back to four brands from eight and trim more than 2,000 outlets.
GM is selling its Hummer, Saturn and Saab brands and discontinuing Pontiac. The automaker plans to focus on Chevrolet, Cadillac, Buick and GMC.
The company is asking dealers to invest in their franchises and order more vehicles and is providing training on how to sell small vehicles profitably and with more features, Dewar said.
GM also told dealers it’s working on an initiative to try and retain the 3 million customers of the brands and models the automaker is discontinuing, said Susan Docherty, the head of Buick, Pontiac and GMC. She was also at the Novi meeting.
The company expects to have only 16,000 Pontiac vehicles remaining for sale by Sept. 1, Docherty said.
To contact the reporter on this story: Katie Merx in Southfield, Michigan, at kmerx@bloomberg.net
Last Updated: August 28, 2009 17:18 EDT
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