Akerson’s Optimism Fuels 52-Week High for GM
After the tsunami hit Japan in 2011, output from manufacturers like Toyota (NYSE:TM) and Honda (NYSE:HMC) plummeted, and GM’s share in the market inflated as a result. Now that Toyota is once again firing on all cylinders, it’s re-claiming market share at what only appears to be an accelerated rate. Toyota bumped its share up from 12.9 in 2011 to 14.4 in 2012.
Looking ahead to the future, Akerson aims to reclaim an investment-grade rating for GM by the end of 2013. According to Bloomberg, “The automaker currently has ratings of BB+ from Standard & Poor’s and Fitch Ratings and Ba1 from Moody’s Investors Service, the highest non investment-grade ratings from the three companies.”
“I want to see the best customer retention in the industry,” said Akerson, indicating that he wants GM’s stock to become a blue-chip investment by the middle of the decade.
Also by the middle of the decade, GM is looking to return its European business to profitability. Car sales in the region are at 20-year lows and the automaker has lost as much as $1.8 billion dollars as a result. The company is pursuing a tedious parts-buying and manufacturing relationship with PSA Peugeot Citroen in order to save costs. Progress has been slow but forward moving…