Fundamentally speaking, GM has enough capacity to service one-third of the American vehicle business, but they only have about a quarter of it right now.
The question is, does it make sense to pour more money into a new Chevy Cavalier to reduce losses from $3,000 per vehicle to $1,000. It's probably a necessary competitive move.
Despite concerns that the current sales weakness represents a new recession in vehicle sales, we believe that the explanation continues to be payback for last summer's excesses,