GM Sales DOWN 9.6% In December; Saturn UP 42%!

[Perian]

Link: http://media.gm.com/servlet/GatewayS...=2&docid=31596

GM Reports 341,327 Deliveries in December


December Exceeded Expectations, Led By Strong Full-Size Truck and Utility Sales

2006 Turnaround Plan Retail Sales Objective Achieved

Residual Values and Transaction Prices Up

Incentive Discipline Continues - Annual Incentive Spend Down $700 Per Vehicle

DETROIT - GM dealers in the United States delivered 341,327 vehicles in December, an increase of 10 percent (43,771) compared with November, but a reduction of 9.6 percent on a sales-day adjusted basis compared with a strong year-ago December. GM's total annual U.S. sales of 4.1 million vehicles in 2006 were down 9 percent compared with last year's 4.5 million, due to planned reductions in daily rental and other marginally-profitable sales.

"December was a very solid sales month for GM, exceeding our expectations, especially in full-size trucks and SUVs," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. "In 2006, despite challenging conditions, we stuck to the game plan and achieved our stated goals in support of Rick Wagoner's turnaround plan for North America. Specifically, we exceeded 3 million retail sales and stabilized market share, improved residual values and transaction prices, lowered daily rental sales, and we accomplished all of this while being the only major manufacturer to substantially lower incentive spending (down $700). For 2007, we'll continue our plans to stabilize retail volume, improve our mix, reduce sales to the daily rental market, exercise strategic and tactical incentive programs and strengthen average transaction prices. We will continue to provide customers with the best coverage in the industry, including our 5 year/100,000 mile limited powertrain warranty with roadside assistance and courtesy transportation."

"As we move to the next phase of the turnaround plan, we plan to win by offering our customers the best products with industry-leading value and dealer service," LaNeve added. "So we are optimistic as we introduce exceptional new vehicles - such as the GMC Acadia and Sierra, Saturn Aura and Outlook, Buick Enclave, Chevrolet Silverado and the all-new Cadillac CTS."

December sales were up 10 percent compared with November, driven by a surge in full-size trucks that offer outstanding fuel economy and value. Highlights include:

* Best sales month of the year for Cadillac (22,715 vehicles) with a 65 percent increase in truck sales compared with December 2005
* Saturn total December sales up 42 percent
* Saab total and retail sales were up 33 percent
* Saturn and Saab saw car sales increases, and total GM car sales in December were up 2 percent on a sales-day adjusted basis.

For calendar year 2006, GM noted several significant achievements that point to strong consumer acceptance of its new products:

* Including the GMC Sierra, GMC Canyon and Chevrolet Colorado, GM sold more than a million pickup trucks in 2006. GM moved the much-anticipated launch of the all-new full size 2007 Chevrolet Silverado and GMC Sierra pickup trucks ahead 13 weeks.
* Sales of the Chevrolet Equinox and HHR, Pontiac Torrent and Saturn VUE drove GM's small utility and crossover sales up 27 percent in 2006, with 346,952 total deliveries.
* HUMMER had a record sales year with 71,524 deliveries, up 26 percent. H3 sales were up 63 percent, to 54,052 deliveries, compared with 2005.
* Saturn sales for 2006 totaled a record 226,375 vehicles, a 6 percent increase on a sales-day adjusted basis compared with 2005. The Aura, Sky and VUE led this improvement. The new Saturn Outlook crossover is being launched now.
* Pontiac G6 had a 26 percent sales increase in 2006, compared with 2005. Chevrolet Impala sales were up 18 percent, with 289,868 vehicles sold. Chevrolet HHR sold 101,298 vehicles and Buick Lucerne sold 96,515 vehicles in 2006, each building on their launch momentum.

As GM executes the North America turnaround plan, much media attention has focused on the sales races between GM and its competitors. "We are obviously competing in a fiercely contested global marketplace," LaNeve said. "We're optimistic that our newest generation of products will continue to drive revenue growth and brand image."

[TaHoE]

Umm...I really can't see how being Down 13% is exceeding expectations. I am so perplexed by the GM releases now adays.

[Perian]

Saab sales are a horror.

Up to 15K off list here in New York and that's the best they could do?

The Sunday Times had an ad from Zumbach Motors for $12.5K off a left over 9-3 ANNIVERSARY EDITION convertible!

How much more of this can GM take?

[igor]

of course Saturn sales were up .. they only had Ion and Vue this time last year ...

but decent showing for GM .

As a Ford fan - I am happy Silverado is still #2 behind F-series - althought the GMC+Chevy again beat Ford ..

oh and annual Total sales:
Ford (brand): 2,433,086
Chevrolet: 2,415,428

Ford is back to #1 ...

Igor

[mkaresh]

Originally Posted by TaHoE

Umm...I really can't see how being Down 13% is exceeding expectations. I am so perplexed by the GM releases now adays.

They expected to do even worse.

On a more positive note, they have been holding the line on incentives much better this year, and relying less on fleet sales. GM has pretty much kicked the rebate habit, and the importance of this cannot be overestimated.

[throwback]

Originally Posted by TaHoE

Umm...I really can't see how being Down 13% is exceeding expectations. I am so perplexed by the GM releases now adays.

I agree, this is spin worthy of a political campaign. There are some bright spots such as Saturn, Escalade and SAAB, but overall this is a poor performance. They need to sell cars to make money, seems obvious I know.

[WishIhadatruck]

Originally Posted by TaHoE

Umm...I really can't see how being Down 13% is exceeding expectations. I am so perplexed by the GM releases now adays.

It makes sense to not expect to beat last years results when you aren't offering nearly as large of incentives this year compared to last year and you've lowered your fleet sales. While it would be nice to sell cars for more money and sell fewer to fleet and still expect an increase in sales I guess that just isn't realistic. I wonder what the market share looks like. We'll have to wait and see once everyones #'s are in.

It is funny and perplexing how they spin stuff however. Even the worst of months in the past always have a positive spin somehow.

[dindak]

Not great news at all. The positive spins are brutal.

Auto sales are expected to fall in 2007, GM really needs to execute it's product launches well and be strong. Things will not get any easier.

[VCDJ]

Honda has 10 years of record sales, and honda is not happy with it. GM has a 13% decline in sales and they are very happy with it. Gm needs to bring in new managers soon.

[Gixx]

I'll wait to see the earnings release for the 4th quarter / all of 2006.

[monkeylizard]

Agreed that sales as compared to last year don't look very good, but before drawing complete judgement I think we should see what the whole industry turns in and where market share fits in. In addtion, keep in mind that a lot of new products are still very much in launch mode (Lamba, Aura and GMT 900). Volume needs a little time to reflect in sales.

[SJZ3]

Mediocre month for the Aura, only 5841 for the month, and fewer than 20k in four full months of sales. The G6 has more than double the sales of the Aura. I wonder how many of those are retail vs rental?

Lacrosse and Grand Prix sales are in the toilet. Overall down about 35k units between the two of them. The Impala is up an impressive 43k units though, which more than offsets both of them. It goes to show that bland (but perfectly compentent) is what people want, unfortunately.

The CTS, STS, Deville/DTS, and XLR are all down year over year. Bad news for Cadillac IMHO. Going heavier into trucks is not a good thing. Hopefully the new CTS will help turn this trend around.

The Cobalt was essentially flat, while the HHR picked up 60k in sales (thanks mainly to full year availability) and the G5 tacked on 8k of gravy. Total sales for the Delta product line were over 300k. GM should really focus on continuously improving this product line IMHO. Its competent, but its really not that far off the class leaders. Better steering and better fuel economy would go a long way toward making it one of the class leaders IMHO. Amazingly, even the Ion had better sales in 2006.

The G6 had a great year, though I wonder how much of that was from fleet duty? Its the best looking (exterior) Epsilon IMHO, and the convertible is pretty cool. Glad to see this nameplate doing well.

The Solstice and Sky sold over 28k units. Not bad for a new entry into the sports car market. GM's got a nice product here, hopefully they don't let it languish (and I don't mean just adding more expensive variants). Hopefully they can figure out a solution to the lack of storage space and/or make the top a little easier to use (maybe figure out a way to offer a power top option?).

Anyway, I hope GM can improve in 2007. I think with a full year of the Aura and an improved Malibu towards the end of the year they have a shot at upping their piece of the mainstreamer pie. A few improvements to the Delta Platform could help it gobble up some marketshare as well IMHO. GM has some opportunity, lets hope they make the best of it.

[Bornfromparents]

They should be in a good position next year with the Lambdas just released, the New 900 trucks, Malibu and CTS, all should help for the long hall, they are in a turn around and only in phase One, As a GM fan we will just have to hold on a little longer to see fruits of there labor.

[MNdudeswitz]

So when does the AURA become a disappointment?

[paul3230]

Originally Posted by VCDJ

Honda has 10 years of record sales, and honda is not happy with it. GM has a 13% decline in sales and they are very happy with it. Gm needs to bring in new managers soon.

True..but GM has been propping up volume for years by selling them to fleets. So I'll take 9.6% decline if that means that they make more money and hey..it's up 10% over november.