GM Inside News Forum banner

GM Responds To NYT Impala Article; 33% NG Vehicle Is Rental

8K views 72 replies 40 participants last post by  SierraGS 
#1 ·
Automotive News

October 20, 2014

Article Quotes:

Since the stylish, redesigned Chevrolet Impala sedan rolled out in the spring of 2013, General Motors executives have been telling anyone who will listen that its days as a rental-lot staple are over.

So this headline in The New York Times last week couldn't have gone over well at GM headquarters: "You Can Rent Whatever You Want, as Long as It's an Impala."

Columnist Josh Barro argued that, despite the redesign, the Impala continues to be the rental-lot king, with 54 percent of 2014 Impalas becoming rental cars.

That figure suggests that Chevy has failed miserably at its stated goal for the "new" Impala: to invert its sales from 70 percent fleet for the last-generation car to 70 percent retail sales.

Cue the GM PR department.

They informed Barro -- and us -- that only one-third of the redesigned 2014 Impalas went to rental companies. The disconnect: The previous-generation car is still in production, branded as the Impala Limited and sold exclusively to fleets. GM doesn't distinguish the two in its sales reports.
 
See less See more
#2 ·
Re: GM Responds To NYT Impala Article

They informed Barro -- and us -- that only one-third of the redesigned 2014 Impalas went to rental companies.
"One-third" of new generation Impala production is rental? Wow, that's much higher than I would have assumed. However, it does give GM the opportunity to give the rental customer exposure to a vehicle that Consumer Reports rated almost as high as possible.

Perhaps the new generation Impala should have come with a new name.

It must have been an interesting discussion years ago at Chevy planning..."Yea, let's keep the Impala name, add the word "Limited" to the old Impala, (because it worked so well with the last Malibu), and to those of you who want to use the 'Caprice' name - we'll give it to the new imported police vehicle".
 
#3 ·
Re: GM Responds To NYT Impala Article

"One-third" of new generation Impala production is rental? Wow, that's much higher than I would have assumed. However, it does give GM the opportunity to give the rental customer exposure to a vehicle that Consumer Reports rated almost as high as possible.

The new generation Impala should have had a new name; "Caprice" perhaps.
Or perhaps change the name of the old car, instead of Impala Limited. The Malibu old body was just called "Classic" right before it went away.
 
#4 ·
They informed Barro -- and us -- that only one-third of the redesigned 2014 Impalas went to rental companies. The disconnect: The previous-generation car is still in production, branded as the Impala Limited and sold exclusively to fleets. GM doesn't distinguish the two in its sales reports.
Then shouldn't GM separate the two models in future sales reports (and have from the beginning) to avoid this type of negative press and confusion.
 
#7 ·
Then they would unzip their fly on how poorly the new model is selling in general.

I like the new Impala and wish it would succeed, but I don't think there is much of a market for it. Either people will spend less and get a mid-sized car, or spend the same and get a mid-sized luxury name plate.
 
#5 ·
GM needs to figure out how to make the next gen Malibu as good as the Impala. Unfortunately the Impala is in a limited segment - people just don't buy large cars as much. Need space? Buy a CUV.

The lack of sales info certainly does help keep the Impala name in the news, though not sure if this kind of coverage helps sell the new Impala.

Beautiful car though, every time I see one I have to look at its flowing lines.
 
#12 ·
So the Impala really isn't selling as well as it is stated - Total Recall Motors is trying to play this both ways - trying to make it seem like the new Impala is selling well when it is really not and having its volume instead being padded by the old Impala.

Not surprising considering how dishonest this company remains. Witch Bara and Associates.
 
#16 ·
GM should not distinguish between the two. This may seem bad, but my guess is it costs GM probably less than $10,000.00 to produce the old Impala. One way or the other, they are making a killing on this car.

There is no need to change names. They just need to keep the current one fresh and up to date. This one is great. They should have this option on their lots

 
#23 ·
GM should not distinguish between the two. This may seem bad, but my guess is it costs GM probably less than $10,000.00 to produce the old Impala. One way or the other, they are making a killing on this car.

There is no need to change names. They just need to keep the current one fresh and up to date. This one is great. They should have this option on their lots

What are you basing that on, and what are you counting (and not counting). Plant/overhead, labor, SG&A?


I bet $10,000 is low for just materials, and there is so much more that goes into a vehicle.
 
#20 ·
Only GM could end up with two Impalas at the same Rental lot that are two totally unrelated models.

For everyone who drives a 'New Impala' and comes away with a good impression, someone will drive the 'Old Impala" and thing GM is a decade behind the industry.

I'm sure they're making cash off the thing but it seems like a bad business practice.
 
#25 ·
It doesn't bother me so much to the fact that the new Impala is garnering higher than expected rental fleet sales. My feeling is that it then gets more people into one than might not have, only to say "wow this truly is a wonderful car", then go out and decide to buy one based on the experience. I say this because I have been through this kind of thing myself. I think it would be nice to know the numbers between the two but GM wont distinguish it. But then again, whatever, as the old one is kind of a cash cow at this point. One other thing is the fact that all the pundits carry on about how inferior the old one is but then highly recommend them as used purchases. Sort of outdated maybe, but not really all that bad is my take on the old one.
 
#32 ·
They are a good thing. Do you not ever rent automobiles?
 
  • Like
Reactions: 1958carnut
#27 ·
Here we go again...

Let me re-explain in what situation fleet sales are bad, and what situation fleet sales are good.

In the 1990's and 2000's, Ford and GM were pouring a huge volume of stripper-level cars into daily rental fleets, at a huge discount. This was to keep their factories open in light of retail customers utterly rejecting their products, to fulfill their UAW obligations. In turn, people rented these poorly built, poorly equipped cars, and got a bad impression of Ford and GM. Then, these cars came onto the used market in awful condition, and depressed resale values even further.

This is how "fleet" sales got their bad name.

Ford and GM selling their trucks to construction companies at near-retail MSRPs, are good fleet sales, since they're making money, and these fleets are choosing GM and Ford because they're good, well-built, and tough trucks, not because they're the cheapest four wheels money can buy.

I'm not sure where the old W-Body Impala fits into all this.
 
#30 ·
Well considering the W-Body Impalas aren't trucks and are probably aren't giving anyone renting a car that great of an impression of GM/Chevy I think you can guess where they fit in. I'm sure there somewhat fun now that they're sporting over 300 hp, which is impressive for a rental but the platform is dated, the fit and finish isn't very good and it's a pretty vanilla looking old car. Assuming the person renting owns a car made in the last decade they'll probalby not get the urge to stop in at thier local Chevy dealer from thier rental experience. I'm not saying the car is horrible but it's unlikely to attract people to Chevrolet.
 
#39 ·
Automotive News

The previous-generation car is still in production, branded as the Impala Limited and sold exclusively to fleets. GM doesn't distinguish the two in its sales reports.
Isn't this the same company that is getting its AZZ kicked because when it came time to distinguish between a failed ignition part and its improved replacement the process didn't see the need in assigning a unique part number to that, thus leading to being unable to "distinguish (between) the two" in safety reports? Sounds like the same problem to me yet again and proof GM still hasn't changed enough.
 
#60 ·
"Most Manufacturers" have a +/- 6 month period of fuzziness, the new Impala has been on the road +/- 18 months and the "W" is got another +/- 24 months that is over 3 years of overlap.

The Malibu was about 9 months, and it would have been a lot less, if not for the early release "ECO".

When Ford flipped the Fusion, they had one down month, sold out all the 2012's and then the next month they were full inventory of the NG Fusion.

Normal overlap is normal, 42 months isn't normal.


No this is different, GM is now recalling issues that likely would never have surfaced. The ignition switches were found in hundreds of thousands of vehicles, some of the current recalls are only impacting a few hundred. They used to issue TSB's to check stuff when the cars are available, but now they are recalling them and sending out notifications to make sure they get checked.
We are going to agree to disagree, GM got caught (ignoring a problem for most of a decade) can we at least agree on that? The last thing they want to do is give a hint of perception, that they are ignoring something, anything, thus the mess they are in, and hair-trigger recall standard.
 
#49 · (Edited)
Estimated CYR 2014 Retail Sales Volume Change % (AN).

......GM.. / FORD / CHRYSLER

JAN. -10... -5..... +14

FEB. -1.... -4...... +22

MAR. xx ... xx..... +19

APR.. +8... -1..... +21

MAY +10.. +6..... +21

JUN... xx... xx..... xxx


JUL... +4... +7... +19

AUG... -4.. +2.....+23

SEP.. +17.. +2.....+19


Estimated CYR 2014 Fleet Sale % (AN).

.....GM / Ford / Chrysler

JAN 24 / 26 / 22

FEB 25 / 32 /25

MAR xx / 32 / 23

APR 27 / 33 / 23

MAY 28 / 31 / 19

JUN xx / xx / xx


JUL 23 / 24 / 11

AUG 22 / 20 / 16

SEP 22 / 24 / 25
 
#50 ·
The latest impala is a stunning vehicle yet it is pricey as shown in the dealership.

The last one I saw was nicely option and over 38 grand....

I realize it's a full size sedan yet it's just not what I would spend 38 grand on.....

I'm sure that's why unit sales are a bit soft...compared to the previous generation impala which was literally going out the door for half as much......while about the same size vehicle....

Americans do shop size and price quite often....

Putting the latest generation car in rental fleets is a smart move to get Americans into the new vehicle as a test drive.

Fwiw....I was in manhattan yesterday and everywhere I looked Toyota camrys were everywhere as cabs......don't think Toyota isn't giving away camrys to get them as cabs for sales volume...

It was distinctly different than what the cab situation looked like in the past...

The fact that Chevy is being chastised by the NY times with regard to rental Impalas in the fleet is nonsense.....

Select attacks on GM are typical.....of liberal media ......such as the ny times..
 
#54 ·
I have read through all four pages of excuses, and I will say this, the new Impala is too good of a product to send 1 out of 3 to Hertz,Enterprise, etc. Yes, this segment is taking a hit from the SUVs and CUVs, but its still no excuse not to market the car, when was the last time one has seen an Impala commercial? Maybe pricing it like a Buick was a mistake too only to put money on the hood to move them.............The new Impala is too good of a product, and deserves better.
 
#58 · (Edited)
Except..... when you look at one, where the Impala name plate was with all this and then the stated goals going forward.

Also how the other domestic competition is doing.

On the first, they ( Chevrolet / Impala ) were running about 70 % fleet and have a goal of getting to about 70 % retail - with stronger ATPS and less incentives.

So.... if you look at what little we have in this thread, then with about a third for rental they are getting close.

The NG Implala's and critically the Impala 'Classic's' Fleet participation in Commercial Fleet and Government Fleet is undisclosed - as we all know you just have the combined number - from CYR2013 as far as this thread goes.

Still, you can range what the NG is doing ie assign all or none or whatever you wish of Commercial Fleet / Government Fleet to either Impala.

You can also apply some common sense concerning Government Fleet; The NG ....last time I looked ( which was a while ago admittedly ) does not come with a Law Enforcement pursuit rated variant while the Classic still does or did. You therefore would think that most to all - literally of this volume in 2013 went to the old Impala and likely continues to do so in CYR'14.


A WAG would be that the NG for CYR '14 is running somewhere between 57 / 65 % retail........ along with much improved ATPs and incentive spending.

( Perhaps an interesting question one way or another would be how it all went in CYR 2013. )

Which brings us to the rest of the competition and also means Chevrolet at the very least is well on the way with the retail percentage goal.

There is a further, possible twist within this we know nothing about per se; from time to time Commercial Fleet pricing on a specific product can be high enough that it is almost as good a thing or even fully equivalent as industrywide and or stronger retail pricing.

Impala NG might have had and may continue to have at least some of that going on as opposed to say Taurus.


If they can reduce the rental percentage over time while getting to and then keeping total fleet @ 30 % then...... running rental higher @ 33 % is perhaps a smart thing. In that Rental can generate quite a bit of favorable exposure - quickly.

Just look at the highly favorable references to renting a NG in this thread....

It is also worth noting that attempting to go from 70 % fleet to 70% retail is quite ambitious and was very unlikely to happen in just a year or two.

Doubly so given the improvements in ATPs and Incentives.
 
#61 ·
Not sure why GM is not selling more as retail it’s a great vehicle. As a former owner of a 2014 Malibu while my vehicle was in the shop for some warranty/recall items I was given a 2014 Impala as a rental car (off the lot) when I returned it a week later I ended up trading in my Malibu for a loaded 2LT Impala. My Malibu was a great vehicle but I needed the extra backseat space for 2 booster seats and an infant car seat. While we have out 2015 Suburban I needed the space just in case I had to pick up the kids.

I would take 2014 Impala over my any other full size sedan on the market you cannot beat the price for what you get and she rides like a Caddy.
 
  • Like
Reactions: 1999 White C5 Coupe
#70 ·
Toyota is okay, but this is a segment being decimated by differing tastes in vehicle types. Some went smaller, some awd, many to SUVs and CUVs, but most of all, the new impala is significantly more expensive, yet lacks the driving dynamics only a rwd car has. Put it on alpha+, give it awd with the 8 speed auto, 5.3 and 6.2 engines, and great design and you'll have a classic in the making.
EpII just doesn't cut the mustard!
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top