Bay City, Michigan 48706
Front Page Photo of the Day Log-IN About us
www.mybaycity.com March 31, 2004
(Prior Story)   Business ArTicle 401   (Next Story)
Sponsored by Bay Area Chamber of Commerce


On the verge of recovery?

GM Economists See U.S. Employment Gains,
More Profits From Market Share

U.S. Economy Growing Strongly, GM's Ted Chu Tells Tri-County Economics Club

March 31, 2004       Leave a Comment
By: Dave Rogers

Printer Friendly Story View

      All economic news now is global, not local, members of the Tri-County Economics Club learned recently from a General Motors economist.

      Ted Chu, manager of economic and industry analysis for GM, filling in for longtime presenter Paul Ballew, chief sales analyst for GM, told the club "global growth momentum remains strong, but some headwinds are developing."

      The U.S. and emerging Asia are the twin growth engines for the global economy, according to Chu. "The U.S. economyis growing strongly, with business investment, exports and inventory adjustments expected to drive U.S. growth for 2004, in addition to sustained consumer demand." The weak U.S. dollar will provide a stimulus for exports, he said.

      Ballew'srecent comments about industry trends were interpreted as indicating GM is no longer pushing for market share gains, being satisfied with stability at the about 28 percent of the market it has held for the past five years.

      Spokesmen for other U.S. automotive firms said increases in market shares were not the goal, but instead more profits were sought from present sales levels.

      Last year U.S. companies lost ground to imports from Japan and Germany. Ford's slice of the market in North American slipped to 20.7 percent from 21.3 percent a year ago, GM dropped to 28.3 percent from 28.7 percent and Chrysler skidded to 12.8 percent from 13.1 percent.

      U.S. automakers had about 80 percent of the North American market 20 years ago; now that share is 61.8 percent, according to reports by Ward's AutoInfoBank.

      GM's Chu cited "economic fundamentals supportive of a broad-based expansion," including strong productivity gains, declining risk premiums and rising profits bolstering capital spending. He sees low interest rates, competitive pricing, expanding net worth and tax refunds as aiding consumer spending in the next year.

      Chu estimates that vehicle sales will total 17-17.3 million units in 2004, up slightly from 2003.

      Manufacturing sector employment is seen by Chu as "on the verge of a recovery," although he said "weak employment growth in the U.S. is having a significant impact on China." Rising protectionism in the U.S. is a concern for China, which fears that its economic growth is too strong.

      Global steel prices, for example, have shot up about 60 percent because of unprecedented demand from China, other forecasters have noted.###



Printer Friendly Story View
Prior Article

June 24, 2019
by: Dave Rogers
TOUGH SCHOOL CLIMB: State Needs 20 Years to Regain Education Vitality
Next Article

June 18, 2019
by: Stephen Kent
ODRAM: One Day Ride Across Michigan
Agree? or Disagree?


Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

More from Dave Rogers

Send This Story to a Friend!       Letter to the editor       Link to this Story
Printer-Friendly Story View


--- Advertisments ---
     


0200 Nd: 06-20-2019 d 4 cpr 0





SPONSORED LINKS

LOCAL LINKS
(Ads not affiliated with Google)




Ads By MyBayCity.com
Bay Area Chamber of Commerce
Click Here to Visit Our Site!
Improving The Economic Climate, Business Environment & Quality of Living Throughout The Bay Area

Ads By MyBayCity.com


Ads By MyBayCity.com
Begick
http://begicknursery.com/
Begick Nursery and Garden Center





Designed at OJ Advertising, Inc. (V3) (v3) Software by Mid-Michigan Computer Consultants
Bay City, Michigan USA
All Photographs and Content Copyright © 1998 - 2019 by OJA/MMCC. They may be used by permission only.
P3V3-0200 (1) 0   ID:Default   UserID:Default   Type:reader   R:x   PubID:mbC   NewspaperID:noPaperID
  pid:1560   pd:11-18-2012   nd:2019-06-20   ax:2019-06-24   Site:5   ArticleID:401   MaxA: 999999   MaxAA: 999999
CCBot/2.0 (https://commoncrawl.org/faq/)