Ahead of General Motors (
GM
,
quote
) earnings Thursday, the company wasn't kidding when calling
itself 'global' motors. 32% of GM's first quarter vehicle
production is going to be in China, versus 30% for North
America.
Full transcript follows
:
it's a big week for automaker earnings. how much will exposure
to global motors affect earnings? tim, always good to see you.
hey, mel, good morning. gm exposure to europe what a head wind to
be. europe unprofitable. when people talk about it was selling
its itself as global motors. 32% of first-quarter vehicle
productions is going to be in china versus 30% in north america.
and just to kind of set the demographics story for emerging
markets for all automakers, u.s. has 77 vehicles per capita of
100 people. brazil is at 16. india is 1.2. so, you know, with
russia about to overtake germany as the largest automaker in
europe, you get the idea. however the head wind for gm are
important. in addition of what's going on over here and in
europe, is something that to be worried. i think they're going to
point out chinese, the luxury automaker is something that's been
very, vyer soft in the second quarter. the outlook for the second
half of the year is much better. but to think that gm has a
straight run in china the glory is definitely not accurate at
this point. yeah, i think that's a good point, in china buying a
cadillac it's not your grandfather's cadillac here in the united
states. it's a lamborghini. exactly. in terms of price point. are
you taking a look at what bmw is saying for example? well,
listening to fiat, to me, they're the biggest important emerging
market producers. fiat reports tomorrow. we had chrysler
yesterday. the numbers aren't great in the preview. again, europe
is the biggest head wind. less losses in europe are their keys.
again, fiats to me the player to look at. especially brazil and
also turkey and other parts of the middle east, i like fiat. the
read-through today isn't great. if you look at pricing, the
automakers have been punished. all right, tim, always good to see
you. thanks. catch more global trades from tim every weeknights
on fast.