An influential annual report by Bank of America Merrill Lynch says General Motors Co. and Ford Motor Co. will gain market share in the United States over the next four years at the expense of foreign automakers such as Japan's Nissan Motor Co.
"GM product launches in model years 2014 to 2017 expected to ramp up significantly as it hits the sweet spot in its product cycle and intensifies focus on product development. This should support market share gains of about 100 basis points into the 19 percent range, as well as strong pricing," analysts wrote in the report, which was released Wednesday.
"Ford should gain about 100 basis points of market share, ultimately settling in the low 16 percent range. We believe this will be driven by the relative strength of its product launches, which are increasingly leveraging Ford's global platforms. However, as management remains focused on maximizing profit, market share may be traded for higher prices (and) profits."
Chrysler Group LLC, which posted the biggest sales gains of any domestic manufacturer in recent years, will see its share growth flatten out, according to the annual "Car Wars" report, which also has Toyota Motor Corp. continuing to gain share.
"Chrysler's launch of Fiat-based vehicles should support a stabilization of market share in the mid-11 percent range,"