GM's 2010 production estimate panned

DETROIT, Oct. 12 (UPI) -- U.S. auto market analysts said General Motors Co. may have eyes bigger than its stomach for 2010, estimating production at 2.8 million vehicles.

The production figure announced by GM is about 1 million more vehicles than it expects to make in 2009, the Detroit Free Press reported Monday.

Analysts were concerned GM would overproduce and have to drop prices below profitable levels to move cars off of dealership lots -- a criticism GM has endured in the past.

"I don't see what they're thinking," said Dave Cutting, senior manager at J.D. Power and Associates, a noted auto research firm.

"Has GM, not having learned a lesson from the past 20 years, going to go after market share at the expense of profits and price?" asked Chris Ceraso, an analyst with Credit Suisse.

GM spokesman John McDonald said, "It's clearly not the old GM." After going through bankruptcy and closing plants this year, "we don't have overcapacity, which is what caused the problem before," he said.

GM believes the market will expand 15 percent next year over 2009 and that the company will hold its 20 percent market share. "Real simple math," said Mark LaNeve, outgoing vice president of GM's U.S. sales.