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Worse from a profitability point of view, GM's product line is currently skewed toward pickups and SUVs, unlike Toyota et al. So declining sales in those segments takes a much bigger bite out of GM's bottom line...
...there much hope to be gleaned from the overall market. Auto sales, and with them an opportunity for a strong GM rebound, aren't expected to recover for quite a while. GM is renowned for its optimistic sales forecasts, but its outlook for the next three years is downright dismal. (Read "The Ripple Effect of a Potential GM Bankruptcy...
...GM's baseline projection for 2009 is industry sales of 12 million cars and trucks - a steep decline from the 16.5 million units sold in 2007, and even from the 13.7 million expected in 2008. Recovery will come slowly. GM projects that industry sales will reach 14.5 million units in 2011 and 15 million units by 2012. As it points out in its restructuring plan, "This is significantly below the 17 million-unit industry levels averaged over the last nine years...
...downside outlook is even gloomier: 10.5 million units next year, growing to only 12.8 million in 2012. That's right around break-even for a restructured GM...
Even if sales do rebound, GM's opportunities for significant profits will be sharply reduced. It has shuttered several truck and SUV plants and will be switching production to small cars, where GM has traditionally had trouble making money...