After automakers reported May sales that hit post-recession highs yet failed to impress Wall Street, The Deal senior writer Lou Whiteman explains what the companies need to prove to investors. Whiteman says investors are likely realizing that this is a highly cyclical industry and with the U.S. seasonally adjusted annual rate of sales hitting 17.8 million units in May, it could be a good time to sell. Whiteman stresses that investors are also trying to tell the companies that it’s time to think about life after the sales surge. While Fiat Chrysler (FCAU) has been open about calling for industry consolidation and would like to see a deal happen with General Motors (GM), GM itself has been resistant to a deal. Whiteman says it’s important especially for GM right now to start thinking about internal restructurings, potential divestitures and some kind of change in its portfolio.
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