Profits for automakers fell as the American economy slowed, a historic supplier announced it was seeking bankruptcy protection and GM announced its sales expectations and another reorganization of its design team.

Profits around the industry are down in the first quarter of 2007 when compared to 2006. BMW posted profits 38 percent smaller than last year, Nissan announced their profits had fallen by more than 50 percent and GM and Ford both announced losses for their North American divisions. GM, who’s profits fell 90 percent even though it had increased revenue by almost $1,000 per vehicle sold in North America, blamed the losses on continued woes in the housing sector and on the collapse of the sub-prime mortgage market.

GM announced that it plans to build and sell more than 9.2 million vehicles around the world next year, which would be up from last year’s sales and the second most number of vehicles GM has ever sold, nearly matching its own record of 9.55 million sold in 1978. It expects more than 60 percent of those sales, and most of the growth to come from overseas markets such as China.

GM issued a press release detailing a reshuffling of GM design talent, last week. Amongst the big winners are Brian Nesbitt, currently Executive Director of Design of Europe, who will move back to the US to the new position of GMNA Vice President of Design for North America. He was responsible for Opel’s new design language showcased in the GTC and also pinned the Chevy HHR and PT Cruiser. Also of interest is David Lyon, currently Executive Director of Design for Asia Pacific, will become Executive Director of Interior Design for North America overseeing Buick’s dramatic growth in China. GM probably hopes he can use some of that Park Avenue interior magic on GM’s North American models.

    Print This Post