From TCC: Shocking Market Share Figures for GM

[Perian]

Source: The Car Connection Daily Email

The Car Connection is reporting the following retail (not including fleet) market share figures for the first 11 days of September, based on information from J.D. Power & Associates.

TCC reports that GM's retail market share is just 19.1%.



It is important to note that this may be due in fact to low inventory levels from the successful "Employee Discount For Everyone" program.

Here are the figures as reported by TCC:

GM: 19.1%
Ford: 17.3%
Toyota: 15.5%
Honda: 13.2%
DCX: 12.7%
Nissan: 8.0%

Commentary from the email:

“Now that the impact of the employee price discount programs have faded, and gas prices have escalated dramatically in the wake of Hurricane Katrina, we are
seeing a strengthening of the trends that existed back in the spring,” said Tom Libby, senior director of industry analysis at the Power Information Network.

“Customers are moving to smaller vehicles—both smaller SUVs and smaller cars—and this is playing to the strengths of the offshore-based manufacturers and hurting the domestics, which have relied, to a greater extent, on the larger vehicles.” The survey also says retail sales of
new vehicles have dropping by 12 percent thus far in the month."

More on the subject from www.TheStreet.com:

"On one level, Honda and Toyota have benefited from the aggressive summer promotional campaigns adopted by the Big Three after GM posted a 46% jump in unit sales in June on its "employee discount" program. Sales at GM, Ford and Daimler-Chrysler all benefited from the ensuing price war, but their Japanese counterparts held their ground as well. Since Toyota and Honda didn't have to sacrifice profit margins to compete, investors smelled opportunity and jumped onboard.

"They were not impacted nearly as much as the domestics would have hoped," said Argus Research analyst Kevin Tynan, referring to Toyota and Honda. "Plus, a lot of people anticipated that the domestics were doing longer-term damage to themselves, so they figured the end result would be more market share for the Japanese."

Apparently, they figured right. In August, when the demand inspired by summer promotions tapered off, GM reported that sales fell 16%. Ford and Daimler-Chrysler fared better, with monthly gains of 6.3% and 5% respectively, but their results still marked a decline from July. Furthermore, their Japanese counterparts continued to shine, with Toyota posting a 9.5% gain, its best-ever August tally.

[01cavalier]

The drop in sales and market share is completely expected with so many people deciding to buy early. This was one deal many knew wouldnt last long...good reason for that. I know GM expected this to happen, especially with inventory so low. I just hope they stop relying on deals & discounts to get sales, the upcoming cars & trucks are very good, but GM will still have a lot of work to do.

[5 watt]

“Meanwhile, the cheaper, fuel-efficient alternatives offered by Japanese manufacturers”



“If you're a car buyer in the U.S. and fuel economy is a concern, then you are beginning your search at an import dealership”



“Toyota pioneered the hybrid car with its Prius”



“Toyota, which has its sights set on overtaking GM as the world's largest auto manufacturer”



There is just so much bull I don’t know were to start. I’m just waiting for someone to say Toyota invented the car. Or better yet that it is a good thing the got a more economical import car because they lost there job.

[ByTheLake]

There's no doubt that GM's market share is a major concern, but I'd not put too much emphasis on the first 11 days of September. That's a very short-sighted measure.

Within 5 years, we all might need to get used to a GM that has less than 20% market share, but it should stop eroding between 15 and 20%. There are simply too many manufacturers competing in this space for GM to maintain 25%, regardless of how good its vehicles are.

[GMFreak8]

Why do all these articles have to end with this d*mn picture, it makes me sick. that is if I'm not already sick by the bullsh*t spewed in the friggin article.

[LI CADILLAC]

Originally Posted by GMFreak8

Why do all these articles have to end with this d*mn picture, it makes me sick. that is if I'm not already sick by the bullsh*t spewed in the friggin article.

ONCE AGAIN, I TOATALLY AGREE WITH YOU!!!!!!!!!!!!

[lytmup]

Originally Posted by GMFreak8

Why do all these articles have to end with this d*mn picture, it makes me sick. that is if I'm not already sick by the bullsh*t spewed in the friggin article.

The only person to blame for the demonic grin on this guys face in every picture is GM. They have dug themselves this whole. They are the ones that allowed Toyota to become who they are.

[grayhorse]

There's a possibility that they can bring back the share somewhere between 35% and 45% if they can immediately respond the need of hybrid car buyers, put into production the fuel cell car, and put more focus on full and medsize sedan, and roadster.

[Perian]

Originally Posted by grayhorse

There's a possibility that they can bring back the share somewhere between 35% and 45% if they can immediately respond the need of hybrid car buyers, put into production the fuel cell car, and put more focus on full and medsize sedan, and roadster.

- Hybrid car

- Fuel Cell car

- New Midsize sedan line

- New Roadster line


You left out solving world hunger.


By the way - a GM 40% market share would neccessitate the building of eight more assembly plants.

Trust me - that's not going to happen.

[KingElvis]

11 days? That's just a blip.

However, I think it would be mathematically impossible for GM to dominate the market like it did 25 or 50 years ago. Just maintaining a 25% market share (and sustaining profitability) would be a victory. Think how many more makers GM has to compete with now compared to in 1955 or even 1980. Plus now, even Mercedes makes SUVs and Japan makes V8 trucks.

[gmsickofan]

It's the 70's all over again, and GM still focuses on big SUVs first. So many of my neighbors buy Toyosanzas, I don't doubt it will be a matter of time before GM's only profitable and optimistic arm in the US is Suzuki selling GMDaewoos.

[gmsickofan]

Originally Posted by GMFreak8

Why do all these articles have to end with this d*mn picture, it makes me sick. that is if I'm not already sick by the bullsh*t spewed in the friggin article.

It's just for you GM freak. Imperious Leader Fujio Cho demands your obsequience (abject or cringing submissiveness [syn: servility, subservience])!

[johnnyl321]

GM won't regain their lion's share of the market for some time. Hopefully, it will happen in the next 10-15 years. It'll probably take at least that long for the American public to forget about "buying the discount" and back into shopping for value. Hopefully, this will help to stabilize the trade in values. It's very difficult for someone who buys a Pontiac Grand Am that has a sticker price of 24k, drive it for 2 years, puts 30k miles on it and then the trade value is around 8k. It's hard to retain customer loyalty if they feel that's all they're going to get. Why do imports have higher trade in values? Is the quality any higher? They don't discount anywhere near the American manufacturers, so I believe the Americans have dug their own grave. They keep selling the price, rather than the value. I hope and pray, that GM will find a good future in the Total Value Promise.

[espo19047]

The first 11 days of a month after a sale that emptied most lots.
I like to come here to read "inside news" this is hardly inside news.
Maybe you can start a section dedicated to people who hate GM.
Keep this crap off the ticker.

[espo19047]

Who writes the headlines? Shocking? please!