GM cars selling with high profit margins, GM rentall car sales down -45% in June

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Results 1 to 12 of 12

Thread: GM cars selling with high profit margins, GM rentall car sales down -45% in June

  1. #1
    6.2 Liter LS3 V8
    Join Date
    Mar 2013
    Posts
    3,231
    Thanks
    180
    Thanked 723 Times in 572 Posts

    GM cars selling with high profit margins, GM rentall car sales down -45% in June

    AUTOMOTIVE NEWS
    DETROIT -- A steep drop in sales to rental companies in June magnified General Motors' weak car sales, which sank 15 percent through the first half of the year.

    Red-hot demand for full-size pickups wasn't enough to give GM a sales gain for June, as overall deliveries slipped 3 percent. GM said today. Sales were hurt by a 45 percent drop in rental deliveries, which GM said it had planned as it seeks to trim rental sales in favor of more-profitable retail and commercial business.

    Sales to retail buyers rose 7 percent. That drove GM to an estimated 16.9 percent retail market share, up from 16.3 percent a year earlier and its best June retail share since 2011, GM said.

    GM leaned heavily on its biggest money makers, the Chevrolet Silverado and GMC Sierra full-size pickups, which rose a combined 19 percent. Sales of the Chevy Colorado and GMC Canyon chipped in a combined 9,090 in incremental volume (the midsize pickups weren't on the market a year earlier).

    But other bright spots in GM's sales report were tough to find.

    The fall in rental volume hurt GM's SUV sales. Combined sales of the Chevy Suburban and Tahoe, GMC Yukon and Cadillac Escalade dropped nearly 40 percent from June 2014, when GM was selling down outgoing '14 models while ramping up sales of the redesigned '15s.

    The decline in fleet sales among the SUV models ranged from 56 percent to 90 percent, GM spokesman Jim Cain said. That is partly because of tight supplies as GM runs its Arlington, Texas, plant flat out to keep up with demand.

    "We are prioritizing retail sales," Cain said in an email.

    Buick sales sank 18 percent, with the Encore small crossover the only one of the brand's five nameplates to avoid a double-digit percentage sales drop.

    Chevy sales fell 3.9 percent on steep drops for several car lines, including the Impala (down 42 percent), Cruze (down 13 percent) and Sonic (off 19 percent).

    Cadillac sales were off 3 percent. Deliveries of its best-selling nameplate, the SRX midsize crossover, rose 24 percent. Sales of other vehicles in the lineup declined, including a 29 percent drop for the CTS sedan.

    GMC was the company’s only brand to post a sales increase, up 8 percent from a year earlier.

    Kurt McNeil, GM's U.S. vice president of sales operations, said in a statement that consumer optimism about employment and the economy is underpinning sales.

    "The second half of the year should be strong too," he said. "That’s especially good news for Chevrolet and GMC brands that have very broad truck and crossover portfolios.”
    LINK


    Gotta say l would rather see General Motors be the world No1 most profitable No3 in sales, rather than be worlds No1 in sales and No3 in profits, l know which would be the more healthy company with a better future for all employees.

    More money to spend reinvest in making better products & grow, stronger lower risk companies get cheaper loans/lower interest rates if they need to borrow money so its a win-win.
    Last edited by Oldsmobile stopped; 07-01-2015 at 03:35 PM.
    OLDSMOBILE - "Start Something"

    100 MPG Chevrolet Silverado E-REV - Fleets only still waiting.
    Hidden Content
    Cut the dependance on Arab oil, cut the trade deficit in foreign oil.

    Life is to short - drive live your dream

  2. The Following 2 Users Say Thank You to Oldsmobile stopped For This Useful Post:

    Butz (07-01-2015),dslay04 (07-01-2015)

  3. Remove Advertisements
    GM Inside News
    Advertisements
     

  4. #2
    R2-D2 Astromech Droid Ed753's Avatar
    Join Date
    May 2005
    Location
    Michigan
    Posts
    18,692
    Thanks
    12,176
    Thanked 7,930 Times in 4,708 Posts
    My Ride
    2018 GMC Sierra Crew 6 1/2'

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    From GM's Presser: Total fleet sales in June were down 29 percent year over year, or 21,366 units.


    With a little backwards math, I come up with:

    2014 Fleet = 73,675 - 21,366 = 52,309 (2015 Fleet)

    -21,366 / 73,675 = -29%


    So that would mean GM's June Fleet sales were:

    2014: 73,675 / 267,461 = 27.54%

    2015: 52,309 / 293,097 = 17.85%


    Current: Hidden Content Hidden Content

    Past: '17 Cruze; '15 F150; '14 Volt; '13 MKX; '13 Silverado; '13 Fusion; '11 Ram; '10 Commander; '08 Sierra; '07 Rendezvous; '05 Ram; '04 Grand Cherokee; '03 F150; '01 Silverado; '00 Jimmy; '99 Sierra; '97 Ram; '96 Mustang GT; '96 Jimmy; '90 Escort GT; '89 Ranger; '84 Omni; '76 Malibu; '78 LeMans; '85 Escort; '82 Lynx; '75 Sierra

  5. The Following 2 Users Say Thank You to Ed753 For This Useful Post:

    ChrisGinNC (07-01-2015),mbukukanyau (07-01-2015)

  6. #3
    lam
    lam is offline
    Premium Member Premium Member lam's Avatar
    Join Date
    Aug 2006
    Posts
    1,813
    Thanks
    308
    Thanked 223 Times in 136 Posts

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by Oldsmobile stopped View Post


    Gotta say l would rather see General Motors be the world No1 most profitable No3 in sales, rather than be worlds No1 in sales and No3 in profits, l know which would be the more healthy company with a better future for all employees.
    .
    GM will NEVER be the World's Most Profitable Automaker with its current Management.
    Two of the most profitable Automakers ALSO HAVE THE MOST VOLUME ........ It's not an either ,or game.

  7. The Following User Says Thank You to lam For This Useful Post:

    Ed753 (07-01-2015)

  8. Remove Advertisements
    GM Inside News
    Advertisements
     

  9. #4
    6.2 Liter LS3 V8
    Join Date
    Mar 2013
    Posts
    3,231
    Thanks
    180
    Thanked 723 Times in 572 Posts

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by lam View Post
    GM will NEVER be the World's Most Profitable Automaker with its current Management.
    Two of the most profitable Automakers ALSO HAVE THE MOST VOLUME ........ It's not an either ,or game.
    I wonder what they would both look like if they had crap like Hertz/Avis Opel on their books losing $20 billions in a decade whose majority lions share of their cars are sold in the fleet/rental markets in Europe? Who see GM as nothing more than a sugar daddy, that will jump throw the another $5.2 for development rather than make them stand on their own 2 feet and learn to walk, and pay their keep. You're right GM are a soft touch they will never make any money with Opel, or will Opel ever pay their keep.

    Porsche and Audi are certainly propping up the profits of one of them, like the Silverado/GMC props up GM globally.

    One is world leader at manipulating the Yen, making billions of $$$ on selling a small Hilux pick-up outside of North America by selling in ALL markets, GM can't be arsed.

    If GM cars are now selling with higher profit margins, are getting out of rental cars in the US that's gotta be better from now on, profits could well grow in the future as a result of this, who knows they could be kings of both. It's nice to see high profit yield Cadillac doing very well in China, as the rest of GM has tanked the big falls are worse than Russia's decline last month, VW numbers have absolutely plummeted in China last month.
    Last edited by Oldsmobile stopped; 07-01-2015 at 06:11 PM.
    OLDSMOBILE - "Start Something"

    100 MPG Chevrolet Silverado E-REV - Fleets only still waiting.
    Hidden Content
    Cut the dependance on Arab oil, cut the trade deficit in foreign oil.

    Life is to short - drive live your dream

  10. #5
    Ute
    Ute is offline
    3.6 Liter SIDI V6 Ute's Avatar
    Join Date
    Jan 2010
    Location
    Saint-Petersburg, Russia
    Posts
    1,177
    Thanks
    1,522
    Thanked 537 Times in 297 Posts

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by lam View Post
    GM will NEVER be the World's Most Profitable Automaker with its current Management.
    Two of the most profitable Automakers ALSO HAVE THE MOST VOLUME ........ It's not an either ,or game.
    Never say never. More than 70% VW's profit is luxury brands (Audi, Porsche, Bentley, Lamborghini). Toyota reduces the cost of lineup's development (all the last products are very mediocre).
    Hidden Content

    Current car: Subaru Outback 3.0R 2008 MY
    Current car: Chevrolet Tahoe 2018 MY

  11. #6
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    29,436
    Thanks
    4,659
    Thanked 6,743 Times in 3,267 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by lam View Post
    GM will NEVER be the World's Most Profitable Automaker with its current Management.
    Two of the most profitable Automakers ALSO HAVE THE MOST VOLUME ........ It's not an either ,or game.
    GM needs to take time to become the "most profitable"

    Develop Buick, GMC and Cadillac, plus perhaps Holden and one of its European brands (Vauxhall) into luxury brands and then, they will become increasingly profitable.

    Our they can go the Toyota Route, where you update a platform for so 20 years so that you are forced to issue preferential shares to develop an all new platform while artificially keeping your 'profitability' up.

  12. #7
    R2-D2 Astromech Droid Premium Member paul8488's Avatar
    Join Date
    Jul 2003
    Location
    Shanghai, China
    Posts
    23,621
    Thanks
    4,145
    Thanked 4,186 Times in 2,403 Posts
    My Ride
    1983 Opel Corsa TR coupe

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by mbukukanyau View Post
    Our they can go the Toyota Route, where you update a platform for so 20 years so that you are forced to issue preferential shares to develop an all new platform while artificially keeping your 'profitability' up.
    If mass-market customers are happy paying for a 20 year old platform, then where is the problem? If Toyota can make a sales-competitive vehicle cheaper than the competition, why is their profit artificial?
    Automotive stories and pictures for the rest of us:

    Hidden Content

  13. #8
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    29,436
    Thanks
    4,659
    Thanked 6,743 Times in 3,267 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by paul8488 View Post
    If mass-market customers are happy paying for a 20 year old platform, then where is the problem? If Toyota can make a sales-competitive vehicle cheaper than the competition, why is their profit artificial?
    GM played that game in the 70,s and 80,s. It back fired big time.

    Just drive a Camry next to the Malibu. You will not believe how bad the Camry is. This is why Chevrolet has market share gains.

    But the worst thing is, Even Hyundai is building better cars than Toyota
    Last edited by mbukukanyau; 07-01-2015 at 11:32 PM.

  14. The Following User Says Thank You to mbukukanyau For This Useful Post:

    Ute (07-02-2015)

  15. #9
    Ute
    Ute is offline
    3.6 Liter SIDI V6 Ute's Avatar
    Join Date
    Jan 2010
    Location
    Saint-Petersburg, Russia
    Posts
    1,177
    Thanks
    1,522
    Thanked 537 Times in 297 Posts

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by paul8488 View Post
    If mass-market customers are happy paying for a 20 year old platform, then where is the problem? If Toyota can make a sales-competitive vehicle cheaper than the competition, why is their profit artificial?
    Toyota is in the same situation as GM was in the 80s. This is the beginning of degradation and decline (Toyota's global sales fell in 1Q 2015).
    Hidden Content

    Current car: Subaru Outback 3.0R 2008 MY
    Current car: Chevrolet Tahoe 2018 MY

  16. The Following User Says Thank You to Ute For This Useful Post:

    mbukukanyau (07-02-2015)

  17. #10
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    29,436
    Thanks
    4,659
    Thanked 6,743 Times in 3,267 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by Ute View Post
    Toyota is in the same situation as GM was in the 80s. This is the beginning of degradation and decline (Toyota's global sales fell in 1Q 2015).
    All it takes for a royalist to leave Toyota is testing another non Toyota brand.

  18. The Following User Says Thank You to mbukukanyau For This Useful Post:

    Jesda (07-04-2015)

  19. #11
    3.0 Liter SIDI V6
    Join Date
    Oct 2013
    Location
    Alberta Canada
    Posts
    508
    Thanks
    218
    Thanked 142 Times in 93 Posts
    My Ride
    2012 Ford Fusion

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Question answered , to me anyway....why was GM reporting the previous 2013 model fleet Impala total sales grouped together with the new 2014 one ?? If rental sales are off so much , then the net sales attributed to the new 2014 one must be low indeed ! Lets get this settled once and for all , GM , give us the sales year to date of the new model of the Impala . I suspect you know the sales very well , so lets be a man about it and put it on the table , please ??

  20. The Following User Says Thank You to usayjim2 For This Useful Post:

    Ed753 (07-04-2015)

  21. #12
    R2-D2 Astromech Droid Ed753's Avatar
    Join Date
    May 2005
    Location
    Michigan
    Posts
    18,692
    Thanks
    12,176
    Thanked 7,930 Times in 4,708 Posts
    My Ride
    2018 GMC Sierra Crew 6 1/2'

    Re: GM cars selling with high profit margins, GM rentall car sales down -45% in June

    Quote Originally Posted by usayjim2 View Post
    Question answered , to me anyway....why was GM reporting the previous 2013 model fleet Impala total sales grouped together with the new 2014 one ?? If rental sales are off so much , then the net sales attributed to the new 2014 one must be low indeed ! Lets get this settled once and for all , GM , give us the sales year to date of the new model of the Impala . I suspect you know the sales very well , so lets be a man about it and put it on the table , please ??
    I just ran a "rolling 12" from April to April, looks like GM is backing off on the Limited's, monthly is down to about 4,000 which puts the New Impala at ~ 6,500; which give you a mix of about 38% / 62%.

    Which, if the 6,500 new Impala's were all going retail, would be phenomenal, but I'd put that number to be at least 20% fleet, meaning "Impala" Sales Average; 5,300 Fleet; 5,200 Retail. (still a lot better than it was)

    And yes, the new Impala is huge, roomier than a Fusion, but a lot of the gained space is in the trunk, so there isn't gobs more seating room in the cabin; I'd take my dad's Impala over our Fusion all day long, but then again, his 2LT Impala is over $130 more a month, than my Titanium Fusion, so it's not apples to apples...........
    Current: Hidden Content Hidden Content

    Past: '17 Cruze; '15 F150; '14 Volt; '13 MKX; '13 Silverado; '13 Fusion; '11 Ram; '10 Commander; '08 Sierra; '07 Rendezvous; '05 Ram; '04 Grand Cherokee; '03 F150; '01 Silverado; '00 Jimmy; '99 Sierra; '97 Ram; '96 Mustang GT; '96 Jimmy; '90 Escort GT; '89 Ranger; '84 Omni; '76 Malibu; '78 LeMans; '85 Escort; '82 Lynx; '75 Sierra

  22. The Following User Says Thank You to Ed753 For This Useful Post:

    usayjim2 (07-20-2015)

  23. Remove Advertisements
    GM Inside News
    Advertisements
     

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2