This afternoon, GM investors got the kind of good news they've been craving for several months. Talking with analysts in Dearborn, Michigan, GM's Chairman and CEO Rick Wagoner said the company plans to save an additional $5 billion by 2011.
Near term, '08 will be tough, but Wagoner's forecast of industry sales in the low 16 million range is a bit higher than many on Wall Street, who think U.S. sales could slide as low as 15.5 million, which would be the lowest since the early 90's.
So If you are a GM investor, how encouraging is this news? Mildly.
Wagoner highlighted the one advantage GM has over its Detroit competitors: its strength in developing markets around the world. In China, GM remains red hot. It's quickly moving into the booming Russian market. And the company has just set up a design studio in India, which many consider to be the most promising of developing countries.
For all the optimism, GM's stock remains stuck in the $22-24 range.
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