April vehicle sales seen down, GM SUVs strong, Detroit Fleet Sales 1 in 3

[Perian]

Link: http://biz.yahoo.com/rb/060501/autos...look.html?.v=2

Reuters News Service: GM RIDING NEW SUV LINE

Article quote:

Analysts expect GM sales to drop between 6 percent and 10 percent. Ford sales are expected to decline in the range of 4 percent to 8 percent, while DaimlerChrysler AG's Chrysler group is expected to see sales in a range between flat and down 4 percent.

Meanwhile, retail demand for GM's new line of full-size SUVs, including the Chevrolet Tahoe, shows no sign of ebbing.

The new SUVs were partly responsible for the GM's first- quarter revenue rise and are the cornerstone of GM's product strategy this year. Sales of the Tahoe were up 37 percent in the first quarter, while the overall market for large SUVs fell 2 percent.

"Sales of GM's full size SUVs, especially the Tahoe, are strong and should help sustain sales at year-ago levels," Merrill Lynch analyst John Murphy said. "Overall sales will decline, however, as GM continues to reduce its dependency on fleet (sales)."

Full article at link.

[Perian]

I paid $ 3.59 a gallon to fill my Yukon 2500 on Saturday.

The bill was more than $ 120!!

It's amazing the GMT900's are selling so well.

Can this continue?

[MNdudeswitz]

^ not if gas goes up to $4.00 a gallon!

[ChevroletRevived]

Yes, with the intro of the hybrids. Remember; most people that drive SUV's are wealthy, and high gas is not going to hurt them. But I see your point; I paid alot to even half way fill the tank on my Suburban.

[importedtuna]

April vehicle sales seen down, GM SUVs strong, Detroit Fleet Sales 1 in 3
Monday May 1, 12:05 pm ET
By Poornima Gupta

DETROIT (Reuters) - U.S auto sales are expected to slip in April, with declines at General Motors Corp. and Ford Motor Co. overshadowing continued gains by Japan's largest automakers, according to industry analysts.

The sales data, set to be released on Tuesday, will be watched as the first indication of whether gasoline prices of over $3 per gallon in some areas have cut more deeply into sales of larger, less-fuel-efficient sports utility vehicles.

Analysts will also be watching with concern to see if the Detroit-based automakers managed to cut back on deliveries of cars and trucks to car rental agencies and commercial fleets, a low-margin category of sales that spiked in the first quarter.

"Not only is the total sales rate softening a bit, but more importantly, the mix of sales is continuing its gradual shift away from truck-based SUVs and toward cars and car-based SUVs," said Burnham Securities analyst David Healy.

That remains a concern for U.S. automakers as SUVs represent their most profitable segment of the market.

Mike Jackson, who heads the largest car dealership chain AutoNation Inc., said last week that so far there appeared to be little or no impact from rising gas prices on sales overall.

Meanwhile, retail demand for GM's new line of full-size SUVs, including the Chevrolet Tahoe, shows no sign of ebbing.

The new SUVs were partly responsible for the GM's first- quarter revenue rise and are the cornerstone of GM's product strategy this year. Sales of the Tahoe were up 37 percent in the first quarter, while the overall market for large SUVs fell 2 percent.

"Sales of GM's full size SUVs, especially the Tahoe, are strong and should help sustain sales at year-ago levels," Merrill Lynch analyst John Murphy said. "Overall sales will decline, however, as GM continues to reduce its dependency on fleet (sales)."

Analysts expect GM sales to drop between 6 percent and 10 percent. Ford sales are expected to decline in the range of 4 percent to 8 percent, while DaimlerChrysler AG's Chrysler group (XETRACXGN.DE - News) is expected to see sales in a range between flat and down 4 percent.

Japanese automakers, Toyota Motor Corp.(Tokyo:7203.T - News), Honda Motor Co. (Tokyo:7267.T - News) and Nissan Motor Co.(Tokyo:7201.T - News), are likely to see a slight increase in sales, which would mean a further market-share decline for the Detroit-based automakers.

SALES INCENTIVES KEY

The sales declines at Ford and Chrysler are expected despite aggressive discounts, including higher rebates and interest-free loans on certain older models.

"Ford has joined Chrysler in aggressively utilizing incentives to lift sales," Peter Nesvold, an analyst with Bear Stearns said. "GM now spends the least of the Big Three per unit on incentives, relying instead on strong product cadence."

Overall, analysts expect April vehicle sales to be in the range of 16.5 million to 17 million annually on a seasonally adjusted basis. That compares with a 17.2 annual rate a year ago and a 16.5 million selling rate last month.

Fleet sales cushioned the blow of weak retail sales for the traditional Big Three during the first quarter and allowed all three to maintain production and clear inventory.

U.S. automakers have been promising to move away from such transactions in favor of higher-margin sales through showrooms, a trend that will have to kick in this quarter and next if full-year sales are on track to avoid a steeper than anticipated decline.

During the first quarter, U.S. automakers fleet sales, as a percentage of total sales, were the highest in a decade at over 33 percent, Murphy said.

"Ford and Chrysler fleet sales exceeded one in three vehicles sold and GM wasn't far behind," he said.

[gmrebirth]

Originally Posted by Perian

I paid $ 3.59 a gallon to fill my Yukon 2500 on Saturday.

The bill was more than $ 120!!

It's amazing the GMT900's are selling so well.

Can this continue?

Averages gas prices crept above the all-important $3/gallon mark at the end of April. If GMT-900 sales were strong in April, there is a large chance that sales could falter in May, and most definitely in the coming summer months if gas prices continue to rise and stay high.

Let's wait for full April numbers before jumping to conclusions.

[cfch3399]

Jeez, and how long does a full tank last you?

Originally Posted by Perian

I paid $ 3.59 a gallon to fill my Yukon 2500 on Saturday.

The bill was more than $ 120!!

It's amazing the GMT900's are selling so well.

Can this continue?

[gacSTclass]

For me a full tank on a f/s SUV would last me a week. 120 bucks a week, 4 weeks in a month....you do the math, it sucks.

Despite the naysayers, supporting E-85 has one advantage, we don't have to grab our ankles for Exxon because it is profiting off of high crude prices when some stupid fire in ITALY causes prices to go up. I'm done paying Venezuelan Leftist dictators and Saudi Princes for my fuel while Iranians jack the price up with bluster. Show me the E-85 powered Solstice, please!

Oil leaps a dollar on Italy refinery fire

May 1, 2006 — LONDON (Reuters) - Oil climbed more than a dollar on Monday after a refinery fire in Italy added to fears Iran's defiant pursuit of its nuclear program and violence in Nigeria will lead to a global fuel shortage.

IPE Brent crude futures stood 66 cents higher at $72.68 by 1111 GMT. Earlier they had risen more than a dollar to a session high of $73.05.

U.S. light, sweet crude jumped 59 cents to $72.47 a barrel, off a session peak of $72.85.

Prices were driven higher after a weekend fire that shut ERG <ERG.MI> group's 160,000 barrel per day (bpd) Impianti Nord refinery in Sicily renewed concerns about inadequate refining capacity.

"It's all to do with the refinery in Sicily," said Rob Laughlin of brokers Man Financial in London.

http://abcnews.go.com/Business/wireStory?id=1908851

[63GrandSport001]

SUVs will always sell not matter how high gas prices go, they may not sell as many as they use to but they will continue to sell. And SUVs have a huge huge profit margin which is why they are so important, GM was selling the last of the GMT-800s with major incentives while now they are selling the GMT-900s with no incintives and to make it better for GM sales of big SUVs are up.

this is why it was a good idea for GM to bring out their big SUVs when they did and it shows that GM had a lot of foresight that no one else had. I believe that the best time to come out with your best is when things get their worse and thats what GM did with the GMT-900s. I was reading a article inwhich it noted that GMs 62% share of the full size market has grown to 67% and this will most liekly continue to grow as the rest of the GMT-900 full size SUVs hit the show room. I can see GM with 75% share of this market.

[93typhoon]

Yikes $3.59 a gallon - station by me was $2.71 this morning.
People will learn that how they drive a car is maybe just as important as what car they drive. My neighbor usually drives 85 on the expressway - he slowed down to 70ish last week and got about 20% better MPG.

[gacSTclass]

this is why it was a good idea for GM to bring out their big SUVs when they did

A lot of people credit GM with this but have you sat inside a 2006 model year Suburban? It was nice enough, but looked like it was straight out of 1999. GM had no choice but to update its f/s SUVs. To not do so would have been suicide.

[minnfang]

What kind of Ford is pictured in the right margin of the Yahoo link?

[kool_zx3]

Originally Posted by minnfang

What kind of Ford is pictured in the right margin of the Yahoo link?

That's No Ford, looks like a tribeca or something.

[5 watt]

This may sound mean but high gas prices will only affect the poor and the lower end of the middle class. People buying 40K SUV won’t be changing there spending habits. The mid-sized SUV will take most of the brunt and the used full size SUV will be flooded. In the end the world keeps spinning and the rich get richer.

[goblue1999]

Originally Posted by Perian

I paid $ 3.59 a gallon to fill my Yukon 2500 on Saturday.

The bill was more than $ 120!!

It's amazing the GMT900's are selling so well.

Can this continue?

I feel for you, I paid $2.79/gallon here in Michigan.