Ford & GM to Lead?

GM & Ford are anticipated to lead the global automotive pack.

Bank of AmericaThe auto business is finally looking good for GM and the Ford Motor Company as reports are saying they are set to end the decade in a healthy position, according to a study by Bank of America Merrill Lynch.

This study ranked General Motors and Ford 1 and 2 with Honda in third position. The study named ‘Car Wars' is based on the premise that; automakers that continually launch new products are in a stronger position to grow sales and market share, while companies that roll out lightly updated models remain vulnerable to shifting consumer preferences and tastes.

Predictive analysis over the next 4-5 years estimates that GM will receive 88% of its sales from all-new vehicles, while Ford would be just behind with 86%.

Others that rank above the average are Honda at 85% and Fiat Chrysler Automobiles at 84%. Those that hover just below the average are Toyota at 79%, Nissan at 76%, Korean (all lumped together) at 76% and the European automakers, also lumped together, at 70% but the report argues their slower tempo with product development and with fewer trucks puts them in a weaker position than their competitors through to 2020.

Ford ExpeditionThe industry average is anticipated to be just over the 80% mark. This study also estimates that the truck and SUV sector will continue to grow and lead the market share, with Ford ready to do well in this sector with a new Expedition full-size SUV for 2018 and a new F-150 pickup truck planned to arrive by 2020.

The Ford F150According to the study the total American car sales are expected to reach 20 million units by 2018 and be at their peek before declining by as much as 30% in 2026.

So maximizing sales while the industry as a whole is still on an upswing could go well for GM, Ford and the other players in the automotive market.

GM has plans to aggressively refresh its vehicle lineup, which should pay off over the next 4-5 years with market share and increased sales. According to other auto reports released. GM, Ford, Honda, and Fiat Chrysler Automobiles are all poised to show similar gains as the auto industry is expected to remain healthy throughout this current decade.

Chevy SilveradoAlthough GM, Ford and Honda came out well in the study, many of the other major automakers have been bundled together, which means large market-share swings are less likely in the coming years.
GMC SierraAs mentioned above and not surprisingly, trucks, SUV’s and crossovers will be the key battlefield in the next 4-5 years.

Fiat Chrysler Automobiles will launch a new Ram 1500 truck in 2018, followed by GM’s Chevy Silverado and the GMC Sierra, both in 2019.

There is talk that GM could launch their trucks earlier which may cause Ford to come to the market earlier than 2020 with its new Ford's F-150.

June 2016

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