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.