Variance

May 2006 Sales: General Motors Corp.

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Variance    0

May 2006 Sales: General Motors Corp.

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DETROIT - General Motors dealers in the United States sold 345,157 new cars and trucks in May, down 16 percent compared to year-ago levels, reflecting continued strategic reductions in incentives and daily rentals, which were down 28 percent.

GM Delivers 345,157 Vehicles In May

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sciguy_0504    0

9-2x....LOL.

Mark needs to understand that volume will never be where it was in the past because of a reduction in fleet sales and outrageous incentives. GM is going to have to make some truely, unbelievably great cars to reach those levels and I highly doubt it will reach them even with great cars because those levels were artificially inflated, kind of like a woman stuffing her bra.

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Northstar    11

Well if fleets are about 1/3 of sales (I believe they were in the past), and 1/3 of sales were down 28%, that means that the other 2/3 of sales had to be down 10% to get an average of down 16% (10%+10%+28% = 48/3 = 16%). That's a very rough estimate, but I'm guessing that's relatively close (+/- 3%).

There was -1 Classics sold :lol:

Anyways, there were not many bright spots...

The CTS needs to get here NOW, the LaCrosse needs a refresh but the Lucerne seems to be doing well, it looks like the DTS was hit hard by the fleet reduction, and the STS needs a refresh too. The Aveo should pick back up when the new one arrives, the Cobalt seemed to do relatively well and the Impala did well. The Malibu appears to be the victim of reduced fleet sales once again. The Z06 is giving Corvette sales a boost it would seem. G6 did well, GP was down due to fleet probably, and the Solstice continues it's torrid pace. The Vibe needs a redesign. Saab continues to suck, and the SKY helped Saturn out quite a bit.

Buick really needs the Enclave ASAP, the Escalade is doing well and the SRX was up surprisingly. I'm surprised the Suburban is already at near year-ago levels, but everything besides the HHR and T900s sucked for Chevy trucks. Same thing goes for GMC. The H3 has really taken off for Hummer it would appear, and the Torrent is giving Pontiac some much-needed volume.

All in all, a terrible month for GM. Very few bright spots. Until the Aura, new Malibu and CTS, Lambdas, a T900 pickups come I'm not that optimistic that GM will do very well in sales.

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Matt276    0

Yeah but I think fleet sales are different than rental agencies sales.

I can't wait to see what the Aura and G6 3.6L can do to boost car sales this summer.

Edited by Matt276

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VenSeattle    8

Yeah but I think fleet sales are different than rental agencies sales.

No, Fleet sales include sales to businesses, governments, and daily car rental companies.

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LTB51    0

Aren't the Avalanche, Yukon, Tahoe and Suburban all examples of redesigned trucks rushed to market? Not a good sign that they are all down already.

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Matt276    0

Aren't the Avalanche, Yukon, Tahoe and Suburban all examples of redesigned trucks rushed to market?  Not a good sign that they are all down already.

New ones sell at sticker, last years was 10K off sticker

Some numbers for the month

GM 345 000

Ford 278 000

Toyota 235 000

DCX 212 000

Honda 142 000

At this rate Toyota could pass Ford next year and even GM soon after.

No joke. unless people get tired of seeing Toyota everywhere.

Edited by Matt276

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LTB51    0

New ones sell at sticker, last years was 10K off sticker

Some numbers for the month

GM    345 000

Ford  278 000

Toyota  235 000

DCX  191 000

Honda 142 000

At this rate Toyota could pass Ford next year and even GM soon after.

No joke. unless people get tired of seeing Toyota everywhere.

Honda could pass DCX in the next year or two as well.

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jrockb4    0

So who would have guessed that for the year GM's strongest brands are Isuzu, Saturn, Hummer and Saab :o:lol: If you think I am lying take a look it is true, it's true. So maybe the damaged brands are Chevy, Pontiac, Buick, Cadillac and GMC.

And the brands that are not down much do not have very good lineups to be honest. Is it because to many people they are not GM brands? Is the anti Gm bias that bad? Or is it because they are traditionally low fleet sales brands? Or what?

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VenSeattle    8

New ones sell at sticker, last years was 10K off sticker

Some numbers for the month

GM    345 000

Ford  278 000

Toyota  235 000

DCX  191 000

Honda 142 000

At this rate Toyota could pass Ford next year and even GM soon after.

No joke. unless people get tired of seeing Toyota everywhere.

You'll want to include Mercedes-Benz's 21,xxx sales to DCX for the month of May... you've only listed the sales for the 'Chrysler Group' with DCX's total sales.

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Matt276    0

You'll want to include Mercedes-Benz's 21,xxx sales to DCX for the month of May... you've only listed the sales for the 'Chrysler Group' with DCX's total sales.

You're right. It's 212 000 for DCX group.

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evok    0

All in all, a terrible month for GM. Very few bright spots. Until the Aura, new Malibu and CTS, Lambdas, a T900 pickups come I'm not that optimistic that GM will do very well in sales.

I would not expect those products to stop the slide. The big gainers were the Fit, Accord, Civic, Yaris, Corolla and Camry.

The Corolla and Camry each sold over 40,000 vehicles last month. That is incredible volume and shows the near term market shift back to smaller cars.

GM will NOT make up for lost volume with a new round of large sport utlities, full sized pick-up a couple niche sedans and a Malibu.

GM sold only app. sold 20k, Impala and Cobolts which are brand new vehicles. The Malibu was a no show at 12k.

Assuming gas prices remain where they are, this does not took good for GM.

Even the GMT-900 were lukewarm. They might help the bottom line because of reduced incentives and it is too early to guage the near term success in the market because they are brand new. But the sales of those vehicles does not leave me with a warm fuzzy feeling inside.

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Matt276    0

And I don't think the Lambdas will sell so well either, People are moving to small fuel efficient cars, they just don't want to buy gas anymore, and I understand that. It's the future and GM is not prepared for that. Even a new Camaro would not stop the slide.

All the money thrown into Hummer should have been spent for developing new fuel saving technology five years ago, so GM could face the Toyota Hybrid system. We can only blame GM, not consumers.

Sad, but Toyota is the real winner (right now, at least)

Short term solution would be to offer the Vue's hybrid system into more cars next year. But will GM do it?

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evok    0

How many GM's does it take to make 1 Camry?

How many GM's does it take to make 1 Camry and 1 Corolla?

May-06

LaCrosse 4,990

Impala 23,702

Malibu 12,881

G6 11,534

Grand Prix 6,878

60,075

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VenSeattle    8

Not that it's much of a difference to most people here, but don't forget that GM has limited Impala production to 250,000 for the year. So it's hard to actually judge 23,000 monthly sales in regards to market performance as a new model when that's about how many GM is limiting itself to sell.

Edited by VenSeattle

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evok    0

Not that it's much of a difference to most people here, but don't forget that GM has limited Impala production to 250,000 for the year.

Don't forget that 50% of the 320,000 Impala sold last year went to fleet.

Toyota and Honda may claim they have the hearts and minds of the average American.

But only GM can claim they have the hearts and mind of the average business traveler.

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VenSeattle    8

Don't forget that 50% of the 320,000 Impala sold last year went to fleet.

What is the Fleet/Retail mix of the remodeled 2006 Impala? Is it still 50%? I doubt GM plans to only have 90,000 retail Impala sales for 2006.

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evok    0

What is the Fleet/Retail mix of the remodeled 2006 Impala? Is it still 50%? I doubt GM plans to only have 90,000 retail Impala sales for 2006.

It probably dropped to around 30% of sales for the new 06 model. That would keep the 06MY retail sales in line with the 05MY.

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VenSeattle    8

It probably dropped to around 30% of sales for the new 06 model.  That would keep the 06MY retail sales in line with the 05MY.

Well, I hope that this strategy works and increases the average transaction price per Impala. Let's see if it works out by the end of the year.

Do you know if the Impala's average transaction price has increased any for the first 5 months?

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evok    0

Do you know if the Impala's average transaction price has increased any for the first 5 months?

I have not seen anything good in the way of exact data. It would be my guess it is around the same as last year when the price reduction vs. rebates is factored into the equation. It might be slightly higher because of revised product mix.

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VenSeattle    8

Damn... well I hope it improves, at least somewhat moderately, by year's end. I just can't picture the bulk of 2006 retail Impalas or even fleets being base/stripped models.

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CARBIZ    1

Well, I can't speak for GM corporate, but around here the incentives on the Impala has been a LOT less than a year ago (we had $3,000 cash rebates then and now we have NO cash rebates) and we are not having any problems selling them. Most people see the inherent value of a $25,000 (Can.) V-6 equipped the way the base Impala is. Also, around here they like the fact that it is built close by.

In general, at the dealer level we are working with a lot fewer rebates than a couple years ago and our sales are holding their own.

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LTB51    0

Well, I can't speak for GM corporate, but around here the incentives on the Impala has been a LOT less than a year ago (we had $3,000 cash rebates then and now we have NO cash rebates) and we are not having any problems selling them.  Most people see the inherent value of a $25,000 (Can.) V-6 equipped the way the base Impala is.  Also, around here they like the fact that it is built close by.

  In general, at the dealer level we are working with a lot fewer rebates than a couple years ago and our sales are holding their own.

The old impala was as ugly as sin. The new one looks much better.

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