Summer Blowout Sale Hasn't Lost Steam

  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 11 of 11

Thread: Summer Blowout Sale Hasn't Lost Steam

  1. #1
    Editor Premium Member
    Join Date
    Jan 2003
    Posts
    26,951
    Thanks
    71
    Thanked 422 Times in 426 Posts
    Blog Entries
    6

    Summer Blowout Sale Hasn't Lost Steam

    Summer Blowout Sale Hasn't Lost Steam



    DETROIT -- Sure, it's only a summer blowout sale, and it may be short-lived, but the Big 3 are stealing market share in a monster sales month.

    But it's not clear how long the party will last, because some GM dealers are running low on 2005 models.

    In the first two weeks of July, General Motors, Ford Motor Co. and the Chrysler group grabbed a collective 62.4 percent of U.S. retail sales. That's up 6 percentage points from the same period a year earlier, according to the Power Information Network's sales data.

    The data suggest that the GM Employee Discount for Everyone incentive and copycat programs at Chrysler and Ford have not lost steam. All three programs are scheduled to run through July.

    The recent numbers are a sharp - though likely temporary - reversal of the Big 3's decades-long decline. (See stories on Pages 25-26.)

    The Power Information Network gathers sales information from 6,200 dealerships. Those data suggest that July will be a strong month for the industry. Sales volumes for Toyota, Nissan and Honda are up, even though each lost market share.

    Based on seasonally adjusted annual sales, J.D. Power estimates July's annualized results will top 19 million units. But J.D. Power has not raised its projection of 16.9 million units for the year.

    General Motors confirmed projections of strong sales. The first 20 days of July's employee pricing program have been good, especially for trucks, says Paul Ballew, executive director of market and industry analysis.

    While GM sales appear to be down somewhat from an extraordinarily strong June, sales are up sharply from the year-ago period. "We expect a strong industry and a duplication of June," Ballew says.

    Low inventories?

    GM says dealers will have to make do with their current 2005-model inventories because the automaker is not taking any more orders.

    By the end of June, GM had just a 48-day supply of cars and trucks, according to the Automotive News Data Center, down sharply from 73 days on June 1.

    By contrast, Ford Motor had an 80-day supply on July 1, while the Chrysler group had a 75-day supply. Industrywide, a 60-day supply is considered healthy.

    Some GM dealers say they will unload their 2005 inventory well before the summer blowout sale ends.

    Otto Belovich, owner of Cherry Capital Cadillac-Subaru in Traverse City, Mich., normally considers it a good month when he sells seven or eight new Cadillacs. In June, he sold 12, and he expects to sell 15 in July.

    Three weeks ago, Belovich ran out of 2005 CTS sedans. Now he's down to his last 2005 STS. He has turned to other dealers to help him.

    Belovich recently had a customer who wanted a fully loaded 2005 black V-8 SRX. Belovich found the vehicle at a dealership in Detroit and made a deal to get it.

    "We're trading and buying a lot of inventory," he says. "I have a good working relationship with other (nearby) dealers. They'll work with you if you've worked with them in the past. But if you haven't worked with them, you're not going to get what you want."

    Tommy Brasher, a GM dealer in Texas, says he lost some July sales because his inventory of 2005 models is so low. "It's hard to find what the consumer is looking for," says Brasher, owner of Brasher Motor Co. in Weimar, Texas. "We expect sales to trail off in the next couple of weeks."

    Busiest month

    Ford dealers say July has been their busiest month so far this year.

    "I like the image and the message of joining Ford's family," says Duke Brubaker, general sales manager of Champion Ford-Lincoln-Mercury in Owensboro, Ky. "I just wish Ford had come up with it first. We really should be leaders. Dealers are frustrated on that front."

    Half of Brubaker's trade-ins are non-Ford products. In the first two weeks of July, he sold 40 Ford trucks, up sharply from 18 a year ago. But the dealership has not enjoyed a big increase in Lincoln sales.

    Brubaker hopes Ford extends the Ford Family Plan through August.

    The company would not indicate whether it will renew the incentive.

    Ford Motor appears pleased with sales so far. Dealers have enjoyed "a tremendous spike" in floor traffic, says company spokesman David Reuter.

    Continue Reading... http://www.autonews.com/news.cms?newsId=12867

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2

    Join Date
    Jul 2005
    Posts
    215
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    One thing that this employee pricing is doing is killing the trade-in values of used GM cars.

    So, an earlier thread about cars holding their values longer , well count GM out of that for a while.

    I was trying to buy a nu-used Z06 this weekend, and trade my car in. The dealer told me that with the flood of used GM's on the market due to this employee purchase plan, that the value of all of the used cars have dropped through the floor.

    Unfortunately, the price of the existing used cars (before the employee promotion started) havent been lowered because of all of the money that the dealers are claiming they would lose.


    Anyone else noticed this issue?

  4. #3
    5.3 Liter Vortec V8 XCR440SP's Avatar
    Join Date
    May 2003
    Posts
    1,429
    Thanks
    0
    Thanked 17 Times in 9 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    Yes, its the same thing that happened back in 2001 with the 0%, too many people traded at the same time flooding the used market. Dealers took the early ones based on book pricing and ended up not making much on them due to the depriciation that the 0% caused. It took several months for this to happen last time, but this time I think the dealers have been quicker to react and lower allowences on trades.

  5. Remove Advertisements
    GM Inside News
    Advertisements
     

  6. #4

    Join Date
    Apr 2005
    Posts
    611
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    Belovich recently had a customer who wanted a fully loaded 2005 black V-8 SRX. Belovich found the vehicle at a dealership in Detroit and made a deal to get it.
    If you ALSO have a GM card with 3000 dollars on it, you really can't beat the amazing deals you can get on Cadillacs, some Buicks and GMCs right now. You can get a sweet sleek Cadillac SRX for the price of a optioned-to-the-gills Toyota Highlander and a lot of other less exclusive and less plush cars last I checked.

    Last edited by gacSTclass; 07-25-2005 at 09:33 AM.

  7. #5
    6.0 Liter L76 V8 saturnsteve's Avatar
    Join Date
    Nov 2004
    Location
    Oklahoma City
    Posts
    2,073
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    It lost steam at Saturn. We ran out of 2005's weeks ago, right before they extended the sale

  8. #6
    7.0 Liter LS7 V8
    Join Date
    Apr 2003
    Location
    Daytona Beach, FL and Upstate NY
    Posts
    4,691
    Thanks
    138
    Thanked 440 Times in 227 Posts
    My Ride
    2017 Kia Soul Turbo/ 2018 CX-5

    Re: Summer Blowout Sale Hasn't Lost Steam

    In a few dealerships in upstate NY, there seem to be very few 05's left. A friend of mine decided after years of needing a new car to pick up a Grand Prix or G6 with the employee pricing. However, he stopped over after going to a local pontiac dealership and told me there were hardly any 05's left, and the few the dealership had we only with the light brown/tan interior.

    Needless to say, you can't please everyone. I had to listen to him for 3 days complaining and swearing at GM for still running commercials on TV, only for him to go to the dealer and not find anything close to what he wanted.

  9. #7
    2.4 Liter SIDI ECOTEC GMinTheDriveway's Avatar
    Join Date
    Nov 2004
    Location
    Yucaipa, CA
    Posts
    327
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    Quote Originally Posted by saturnsteve
    It lost steam at Saturn. We ran out of 2005's weeks ago, right before they extended the sale

    We haven't run out of all of the 2005 models, just the ones everyone is looking for. We have Red Line IONs and VUEs and some weird option packages left of others but with only about 20 new cars left and 5 of them in demo service I am turning people to 2006 models as much as possible.
    This usually doesn't start happening until October/November. As long as I have *something* to sell I'm fine. Most customers don't understand, however.
    Currently in the driveway:

    2005 GMC Canyon Z85 Crewcab
    2002 Saturn SL2
    2000 Saturn SL2
    1969 Chevrolet Camaro 350
    1968 Firebird 400 Coupe
    Non-GM
    2004 BMW Z4 3.0i
    2002 BMW 325Ci convertible

    Gone but not forgotten:
    2005 Pontiac GTO Supercharged 487RWHP/490RWTQ

  10. #8
    GMI Contributor Premium Member Ming's Avatar
    Join Date
    Jan 2003
    Location
    An Alternate Timeline
    Posts
    14,692
    Thanks
    0
    Thanked 1 Time in 1 Post

    Re: Summer Blowout Sale Hasn't Lost Steam

    I hope you dealer guys aren't complaining about running out of '05 models. I've seen some 2004 stock selling "new" on some dealer lots only a month or two ago. That can't be a very good thing. Don't dealers pay a price just to have inventory on hand? Sounds to me like a sweet deal, I'm sure plenty of dealers wouldn't mind "losing steam" by selling out of existing inventory. But I suppose I could be wrong.
    Last edited by Ming; 07-25-2005 at 12:27 PM.

  11. #9
    2.8 Liter Turbocharged V6 hdmax's Avatar
    Join Date
    May 2005
    Location
    Central Ohio
    Posts
    922
    Thanks
    3
    Thanked 71 Times in 37 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    I remember back in the early 80`s seeing a few 2 and even 3 year old new trucks on the lots. I believe a new 78 or two was still on the lot well after the 81`s were out.

    Quote Originally Posted by Ming
    I hope you dealer guys aren't complaining about running out of '05 models. I've seen some 2004 stock selling "new" on some dealer lots only a month or two ago. That can't be a very good thing. Don't dealers pay a price just to have inventory on hand? Sounds to me like a sweet deal, I'm sure plenty of dealers wouldn't mind "losing steam" by selling out of existing inventory. But I suppose I could be wrong.

  12. #10
    Firebird Concept (the turbine one) asim's Avatar
    Join Date
    Mar 2005
    Location
    Houston, TX
    Posts
    11,235
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    No....I hope they still have some '05 tahoe's by the end of the year, so i can buy during (hopefully) at red tag price. It ends up cheaper b/c last year they gave me a bonus of about 1500 dollars for the GM card. At least they'll by '06s and they'll try to get all of those old tahoe's to make room for the new generation ones.
    I'll make a new sig. Later.
    Hidden Content | Hidden Content | Hidden Content

  13. #11

    Join Date
    Apr 2004
    Posts
    1,420
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: Summer Blowout Sale Hasn't Lost Steam

    Yeah, my local Kia dealers are advertising MANY leftover 2004 models (3 types) in the paper weekly! WOW.

    My Audi dealers have a few as well!

  14. 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