GM Average Transaction Price up 8%

[zete]

Link: GM Average Transaction Price Up 8%

General Motors Corp.'s average U.S. transaction price rose 8 percent in December on vehicles from the prior year, its chief sales analyst told reporters and analysts on Wednesday.

(more at link)

Now that's good news.

[BusyBody]

Some good news is a relief amongst all of the negativity!

[plane]

That just about cancels the share loss.
Considering that 2006 sales were more heavily weighted towards retail, GM may nearly be at the point of reversing revenue slide.
Combined with reduced fixed costs, it will be interesting to see GM's 4th quarter numbers.

[osv_alero]

This means less rebates and less fleet. Just as promised.

[uboys]

Originally Posted by osv_alero

This means less rebates and less fleet. Just as promised.

Don't tell the naysayers.

[igor]

Originally Posted by osv_alero

This means less rebates and less fleet. Just as promised.

yes and no ..

it also might mean, they have more expensive models on the road ... but looking at the shanges in 2006 ... there were no brand new models, that would do this - besides Aura, anbd to smaller extent Solstice/Sky.

I would venture to say, that the major effect was due to GMT900's, and possibly smarter marketing/incentives where they pack in free features, rather than lower price (think free Navi in Caddy's)

Finally- we also have to remember, that we are comparing to 2005 - the infamous "Employee Discount for Everyone" year - not a fair comparison point.

But it is still a good sign - keeping the prices as low as they were in 05 would have been suicide ...

Igor

[megeebee]

/\/\/\/\/\


IGOR is right when he points out that last December was pretty bad owing to the "hang-over" from the Employee Pricing fest.

Still, an 8% increase in transaction is pretty good. And I wouldn't ascribe too much credit on the SUV's. They are very important, I know. But didn't sales start to soften quite a bit in the 3rd quarter?

[Globalist]

I think GM's average transaction is $1000 higher than industry average. It's good news--better mix. Eager to see GM's sales growth in 2006 compared to 2005.

[zete]

When do the quarterly numbers come out. That will show us some real figures and, hopefully, a profit. A profit would make everyone's day -- and send the stock up, regardless of market share.