I don't think Wall Street had fully realized the dependence of GM's and Ford's North American earnings on a few light-truck models. That was the nasty surprise that drove their shares down.
I guess I'm a little skeptical about the product side of this restructuring. Can they turn around the decline in market share with their new product?
Detroit was an island surrounded by prosperity this year. The big SUV sales collapsed and did a number on their profitability. Both GM and Ford will lose a little market share in 2006, but not at the rate of 2005.
I'm not sure how significant that is because these warped market shares were caused by the strike that is now over.
You have to praise their sense of realism, that they'll never get to a 25 percent share again. They have got to do this to survive.
GM is losing market share overall, but mostly because of its fleet sales. GM's sales to actual retail customers were up a bit in February, so its total market share is down, but in the units that really count, the results weren't that bad.
I don't think there's any sector- or stock-specific news that is moving these stocks today. The gains you're seeing are a reaction to the steep drop these stocks have taken of late and the recovery the shares have seen for the last few sessions. It's pretty much a group recovery.