GM March '06 Sales Report - Down 14%

[Perian]

Link: http://media.gm.com/servlet/GatewayS...=2&docid=24824



GM Reports 365,375 Deliveries in March

2007 Chevy Tahoe Sales Exceed 10,000 Units in March; Up 41 Percent Compared to February.

2007Cadillac Escalade Sales Rise 68 Percent vs. February; GMC Yukon Sales Up 109 Percent.

Premium Brands, Cadillac, HUMMER, Saab and Buick, All Post Sales Gains in March.

GM's Total Sales Down Compared to Strong Year-Ago Results

DETROIT - General Motors dealers in the United States sold 365,375 new cars and trucks in March, down 14 percent compared to year-ago levels. Total car sales were down 22 percent, and truck sales were down 9 percent.

GM's retail sales in March were down 17 percent compared to strong year-ago deliveries. Fleet sales were down 5 percent. Daily rental sales declined by 8 percent compared to last year. Commercial sales were up 7 percent.

"March sales were solidly in line with the targets established in our U.S. turnaround plan," said Mark LaNeve, General Motors North America vice president, Vehicle Sales, Service and Marketing. "We knew that comparisons to a year ago would be difficult because of high daily rental sales and expensive incentives last March. We are pleased that consumers are reacting very favorably to our great new products, with the Chevy Tahoe, Impala and HHR; Buick Lucerne; Cadillac Escalade; and GMC Yukon all having a great month."

Consumers in March continued to respond enthusiastically to General Motors' new models. Retail sales of GM launch vehicles were up 30 percent compared to February and accounted for one-third of GM's total deliveries for the month.

Success of GM's launch vehicles is a critical component of GM's North America turnaround strategy.

LaNeve went on to explain that March retail deliveries of new models were led by robust sales of GM's all-new full-size utilities. The 2007 Chevrolet Tahoe posted 10,126 total deliveries and 9,505 retail deliveries. Total 2007 Tahoe deliveries in March were up 41 percent compared to February. Total Tahoe sales rose 20 percent compared to year-ago levels.

The 2007 Escalade posted 2,761 total deliveries and 2,669 retail deliveries. Total 2007 Escalade deliveries were up 68 percent compared to February. Total Escalade sales were up 45 percent compared to year-ago levels.

The 2007 GMC Yukon had 3,419 total deliveries and 3,309 retail deliveries in March. March deliveries of the all-new Yukon were more than double its total sales in February (+109 percent).

"Given the strong consumer demand for these great new vehicles, we're feeling good about our decision to increase and pull ahead production," LaNeve said.

GM's retail selling rate in March was 3.0 million units, a level that is consistent with GM North American Operations' turnaround strategy. The retail selling rate has stabilized in recent months, improving from just above 2.7 million units in the fourth quarter of 2005.

"We've made a strategic decision to focus on retail sales and move away from marginally profitable business that in the end is a drag on our sales results and profitability," LaNeve added. "This is how we are providing consumers with the best value in the industry, building strong brands, improving the quality of our market share and turning around our U.S. business."

Other new vehicles also recorded solid retail sales results in March. Lucerne, Buick's all-new luxury sedan, posted its best total and retail sales since its introduction in October 2005. March retail deliveries were 73 percent greater than year-ago LeSabre retail sales. Through the first quarter, Lucerne's retail sales account for more than 40 percent of Buick's total retail deliveries.

Consumers and dealers continue to respond very favorably to the new Chevrolet Impala. Retail sales in March were 16 percent greater than February and the sales mix has been very favorable, with strong demand for the SS version. Additionally, dealer orders for Impala have exceeded expectations. HHR also posted solid sales results in March, with retail sales up 4 percent compared to February, despite lean dealer inventories.

HUMMER set another sales record in March, with total sales up 176 percent. Retail deliveries rose 165 percent. HUMMER's March results were driven by continued strong H3 sales. H3 has widened its sales lead in the entry luxury utility segment, capturing over 70 percent of the segment for the calendar year-to-date.

Saab also improved its retail sales performance in March, with retail deliveries up 15 percent. This increase was led by 9-3 sales and the addition of the 9-7X to Saab's portfolio.

The redesigned Saturn Vue lengthened its streak of year-over-year sales improvements, posting a sales increase for the tenth consecutive month.

[Perian]

GM can sure make a 14% drop in sales seem great...

I imagine fleet sales dropped last month as Malibu sales were down 32%, and Vibe sales fell 47%..

[moman]

Just as expected, more spin from GM on the astounding success of the GMT-900 SUVs.

Let's see, assuming they sold 25,000 so far this year they are on track to sell 100k, 150k max. That's well down from expected forecasts if I recall correctly. My concern is if a large portion of the current sales are from pent-up demand and early adopters - once they are fulfilled there will be some slack in sales.

[JVal14]

Originally Posted by moman

Just as expected, more spin from GM on the astounding success of the GMT-900 SUVs.

Let's see, assuming they sold 25,000 so far this year they are on track to sell 100k, 150k max. That's well down from expected forecasts if I recall correctly. My concern is if a large portion of the current sales are from pent-up demand and early adopters - once they are fulfilled there will be some slack in sales.

The new SUVs weren't even really available until March, so the results for the year thus far should be lower than the remainder of the year. Also, Chevy and GMC will be making for engines and transmissions available as the model year goes on, so I would epect demand to stay lively.
Also, I think that GM needs early adopters. They need to get new models out in the open where consumers can see them and hopefully understand that it's ok to drive a GM car again.

[Quickening]

Its going to get rough before it gets better. Especially with GM sticking to their pricing plan and limiting fleet sales. But in the end its for the better, we just need new products hitting the streets.

I'm seeing more and more Tahoes around and I love them! Everyone complains about them being low to the ground, but once you see them out driving it doens't look low at all. This year we have the new SUV's and Trucks and then a whole new Saturn besides the ION (Astra, please hurry up!) I think once things get moving..it will get better.

[WishIhadatruck]

Originally Posted by Perian

GM can sure make a 14% drop in sales seem great...

I imagine fleet sales dropped last month as Malibu sales were down 32%, and Vibe sales fell 47%..

Malibu was even down from Feb. a little. But overall March had much higher deliveries than Feb. We'll have to see how everyone else does to get a good feel for if it was a good month or not. Hopefully marketshare is at Feb. or higher levels for retail. That is the real gage.

[jbartley]

the GMT-900's are hindered by how fast they can be made and sent to the lots.

I imagine the escalade is going to have a killer april and may, once they are out in larger numbers.


GO LUCERNE!

[stevecmh]

hmm. they can sure make bad news sound good. LOL
lets hope it will just be good news in the future.

[boblutzfan]

The alarming drop off in the following sedans sales should be a warning to GM that they desperately need to fix their mid-size sedans as badly as they needed to fix the trucks. GM needs to pull ahead the Malibu replacement. It is worth the cost - just to help repair the damaged reputation that this nameplate has. They also need to bring out the updated Lacrosse that was secretly debuted last week. GM - Are you listening? Look at your own numbers:

2006 2005 Change
LaCrosse 5,764 8,233 -30.0
Malibu 13,716 20,085 -31.7
Monte Carlo 2,667 3,810 -30.0
Grand Prix 6,501 10,036 -35.2
ION 7,518 10,386 -27.6

Compare this to Toyota's numbers:
COROLLA 32,312 32,005 +1.0
CAMRY 38,981 38,263 +1.9
AVALON 8,697 8,625 0.8

Two of their models (Corolla and Camry) are old designs yet they still managed sales gains. GM needs to do some radical work to the Malibu, Lacrosse and Grand Prix to make them competitive against the Toyota Trio. Say what you want about Toyota - but they know how to build, market and sell a sedan. Maybe if the Lacrosse didn't look like a 90's sedan, the malibu so ugly and all GM mid size sedans above (except the Lacrosse) having such a terrible interior they would sell better.

[Buick61]

Cobalt up 45%+ That car's sales are all over the map.

[VibenPontiac]

How else are they going to spin it - if they come out and say "march sucked, we sucked, our cars sucked... well you can imagine the response in the market - both by customers and the stock markets. PR is called PR for a reason.

That been said I did get a chuckle re the upbeat nature of the release

[BigAls87Z28]

Most of this decline is gunna come from the pulling out of the fleet sales, and that can be seen by the ususal players as someone pointed out. What needs to be focused on is actual retail sales, sales of people going into the dealer and buying a new GM vehicle. What is also good to look at is the conquest sales, those who are bringing in there Camrys, Accords, and Altimas for GM vehicles. It is also good that people are not holding back on buying SUV's. You can say "well, its people that held back on buying the gmt800 suvs" but the point is, people are still buying SUV's, not many people are too concerned about gas prices still because they still need these vehicles. That is what this is showing me. And as long as SUV sales are rolling in, that means that so will profit, which means much needed funds for upcoming projects such as the next gen Malibu and other Epsilon II cars, the Zeta cars, and Delta II.

[boblutzfan]

Originally Posted by BigAls87Z28

And as long as SUV sales are rolling in, that means that so will profit, which means much needed funds for upcoming projects such as the next gen Malibu and other Epsilon II cars, the Zeta cars, and Delta II.

These are the cars that need to be out as soon as possible. So many people think of Chevy as a truck brand - they go to the dealership and see rental cars and trucks. No one ever thinks that a Cobalt, Malibu or even the Impala (even though the new one is much better) are aspirational cars. They are viewed by the industry as fleet cars.

GM needs to reduce fleet sales as low as possible and start bringing out nicely styled mainstream cars.

[GMFreak8]

It actually is upbeat in my view. They aren't relying on fleet sales (which accounts for a majority of the sales drop offs), and retail sales are staying strong for the new models. I'd rather have a leaner healthier GM than one that posts sales gains from fleet sales. Many won't agree with me, but I think the best thing that could happen to GM right now is to cut down on the less profitable fleet sales, focus on the new models, ride it out, and pass the "world's largest automotive company" tag along to toyota. As Lutz has said, a company that's fighting is usually the company that puts out some of the best vehicles. I think in the next few years this is what we'll see. I'm proud to be a GM fan, and having the most sales of any manufacturer isn't part of my proudness. I'd rather have a GM that sells half of what it sells now, isn't the largest manufacturer, builds some of the highest quality desirable vehicles around, and is profitable.

[boblutzfan]

Originally Posted by GMFreak8

It actually is upbeat in my view. They aren't relying on fleet sales (which accounts for a majority of the sales drop offs), and retail sales are staying strong for the new models. I'd rather have a leaner healthier GM than one that posts sales gains from fleet sales. Many won't agree with me, but I think the best thing that could happen to GM right now is to cut down on the less profitable fleet sales, focus on the new models, ride it out, and pass the "world's largest automotive company" tag along to toyota. As Lutz has said, a company that's fighting is usually the company that puts out some of the best vehicles. I think in the next few years this is what we'll see. I'm proud to be a GM fan, and having the most sales of any manufacturer isn't part of my proudness. I'd rather have a GM that sells half of what it sells now, isn't the largest manufacturer, builds some of the highest quality desirable vehicles around, and is profitable.

Agreed. I just wish that the mainstream sedans that GM sells were better. The Malibu is terrible and the GP is gimicky. Gm wouldn't have to rely so much on fleet sales if their sedans were "got to have". Hopefully the Aura due next week will be a sign of good things to come.