GM Retail Sales Best-Ever Month In June

[56 Starchief]

6.27.06
http://money.cnn.com/services/ticker...2_FORTUNE5.htm

GM Sales Executive: Retail Sales Best Of The Year In June

June 27, 2006: 10:28 a.m. EST

DETROIT -(Dow Jones)- Though the comparison numbers might not show it, General Motors Corp. (GM) may have its best month of the year for retail sales in June as the company readies for a brief incentive program that will offer 0% financing.
GM, which is restructuring its North American operations after posting a $10.6 billion loss last year, has a new strategy this year to rely less on incentives and lessen sales to rental fleets. That and new models have June sales shaping up to be the best month in terms of retail sales, GM sales analyst Paul Ballew said Tuesday during the auto maker's quarterly sales and marketing press conference.
That's despite high gas prices, which are moving customers away from trucks and sport-utility vehicles - GM's strength - toward cars and crossover vehicles.
"We are having our best retail month of the year despite that headwind mix," Ballew said.
"Our performance in June is outpacing the industry," he added, noting that the overall industry has been negatively impacted by high gasoline prices. GM sales were down 12% in May, more than the company expected.
Analysts expect GM's overall sales to be down more than 30% when compared with last year. Ballew noted that GM was the only auto maker in June last year to offer employee pricing for the public, a tactic that created a sharp spike in summer sales.
Mark LaNeve, vice president of vehicle sales, acknowledged that the overall sales comparison numbers will look "brutal" in June and July. He added, however, that the sales comparisons will look better later in the year.
GM is readying to offer an incentive program that will offer 0% financing on Chevrolet, Buick, Pontiac, and GMC models from June 29 to July 5. GM says the new program is consistent with its strategy and will be promoted by division, not as a GM program.
Overall incentive spending at GM is down $1,100 per vehicle in June versus the like month last year, Ballew said.

-By Terry Kosdrosky, Dow Jones Newswires; (313) 226-1251; terry.kosdrosky@ dowjones.com
(END) Dow Jones Newswires 06-27-06 1028ET Copyright (c) 2006 Dow Jones & Company, Inc.

[56 Starchief]

so...

what does this mean in light of the analysts' comments today?

[asim]

I'm not going to call anything until the month is officially over, but it should look pretty good since these lasts days are going to be pretty good because of the 0% promotion.

[SobeSVT]

Though the comparison numbers might not show it . . . priceless
GM sales were down 12% . . . not true they were down 16%
Talk about PR.

[AdmiralViscen]

Wait till the month is over for stuff like this. That's my opinion.

Overall incentive spending at GM is down $1,100 per vehicle in June versus the like month last year, Ballew said.

That's good to hear, though.

[Bvonscott]

Hey they keep forgetting Saturn is part of the program too... I sold a Vue today with the 0% for 72 months and the payment was $299 for a $20550 4cyl Auto.. pretty good! That was about the payment for a 4 year lease!!

[cincygoblue]

Originally Posted by SobeSVT

Though the comparison numbers might not show it . . . priceless
GM sales were down 12% . . . not true they were down 16%
Talk about PR.

Can't wait to hear how Ford spins next month's sales, when they compare to last July! They'll do the same thing, but they won't be able to say that fleet sales are down. In fact, it'll probably get reported that Ford sales were down X amount, even WITH increased sales to fleets. How will that look? Ford will wish they could spin something positive out of it, like GM is doing here.

In case you didn't get the facts in the article, the "comparison" is to the initial launch of the Employee Pricing for Everybody campaign. NO SALES figures will look that good for years to come. You think it's PR, well it is. GM has to put something out explaining why misinformed or uniformed analysts and media shouldn't just report a sales drop of 30% - comparison to the unattainable and lower fleet sales.

[SobeSVT]

Originally Posted by cincygoblue

Can't wait to hear how Ford spins next month's sales, when they compare to last July! They'll do the same thing, but they won't be able to say that fleet sales are down. In fact, it'll probably get reported that Ford sales were down X amount, even WITH increased sales to fleets. How will that look? Ford will wish they could spin something positive out of it, like GM is doing here.

In case you didn't get the facts in the article, the "comparison" is to the initial launch of the Employee Pricing for Everybody campaign. NO SALES figures will look that good for years to come. You think it's PR, well it is. GM has to put something out explaining why misinformed or uniformed analysts and media shouldn't just report a sales drop of 30% - comparison to the unattainable and lower fleet sales.

We will leave that for July, boy am I glad that Ford was a late and reluctant joiner of the employees discount nonsense.