Review Car

GM To Post Low Fourth Quarter

General Motors has been doing so well in the last few months, reporting earnings that are topping almost every other automaker, however, for this quarter, they are expected to post figures that are much lower than what they have posted in the past. The reason is due to the new vehicles that they are releasing. Analysts say that this is going to be the lowest profit that the company has produced since first declaring bankruptcy in 2009. So should people start to sell their GM stock and prepare for a repeat in history? 

Most professionals in the field are stating that this is not something that consumers should be worried about. It seems to be happening to all the automakers this quarter because of the release of many of their new vehicles. Automakers are paying more for materials to make these cars, and the actual production of these newer costs is cosing the automakers much more than they had anticipated. And it is hard to pass on these costs to the consumer who are looking for the best deal. And since so many automakers are in this position, they are simply taking the hit to their profits. 

GM is expected to post around$1.06 billion net income for the fourth quarter, which is comparable to what they were posting two years ago. It is definitely not going to be a quarter for the award books that much is for sure. However, the company does not seem to be worried, despite many people believing that the automaker is going back to its old ways. GM is confident that they will gain this back the next time since they are offering incentives that are attracting more and more consumers to the GM brand. Ford and Daimler are also in the same exact situation as GM, feeling the pinch of the rising costs to produce the new vehicles that are being offered.