Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Dealers

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Thread: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Dealers

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    Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Dealers

    Automotive News
    September 12, 2016




    It has been slower going than expected for the redesigned Chevrolet Cruze since its arrival in early 2016, but the car finally showed a glimpse of its potential in August.

    Cruze sales in the U.S., which had fallen 33 percent this year through July, jumped 52 percent last month. August’s performance represented the car’s highest volume since June 2015, as Cruze retail sales surged 18 percent.

    General Motors averaged 859 Cruze sales a day in August vs. 564 a day in the first seven months. After being outsold by the Ford Focus in August 2015, the Cruze nearly doubled up on the Focus last month. The results contrasted sharply with a 3.8 percent decline for compact cars across the industry.

    More inventory was the biggest reason. August was the first month this year in which dealers had more than 40,000 Cruzes in stock. Even so, the surge in Cruze sales means that equates to a 48-day supply, which is still less than ideal for most dealers.

    “I need a three-month supply to really make some noise,” said Michael Maheras, who has two Phillips Chevrolet dealerships in Chicago’s south suburbs. “But it’s definitely getting better, and we’re seeing a lot of conquest buyers, which is great.”

    With more inventory for dealers to hawk, GM bumped up discounts on the Cruze in August. Incentive spending rose to an average of $3,474 per vehicle from $3,196 through July, according to Autodata.

    The arrival of the Cruze hatchback also should bolster sales for the nameplate. “We’re even more stoked about the hatchback,” Maheras said. “I just received my first one, and I’ve already got it sold. It sold in one day.”

    Inventory shortages of the second-generation Cruze were compounded by an April earthquake in Japan that knocked out a supplier of infotainment-systems parts for many GM vehicles. A resulting two-week shutdown at four GM plants, including the Cruze plant in Lordstown, Ohio, came just as output of the new model was hitting its stride.

    Dealers say Cruze demand also has been affected by the vastly improved Malibu, whose sales are up 14 percent this year. Before the Malibu was redesigned last year, many customers who didn’t necessarily need a larger car might have decided to go with the Cruze instead.

    Chevy accelerated its advertising plans for both the Cruze and Malibu over the summer after sales began lagging expectations.
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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Chevy accelerated its advertising plans for both the Cruze and Malibu over the summer after sales began lagging expectations. (Cruze) incentive spending rose to an average of $3,474 per vehicle from $3,196 through July, according to Autodata.
    I am seeing quite a few on the roads here in New York. It's a great looking vehicle, and the new hatchback can only help gain market share. While the diesel offering will be initially disappointing, let's hope the sales give GM a reason to improve on the models and transmissions offered while VW sits on the sidelines.

    Good to see the new Cruze (at last) finding marketplace acceptance, but at what cost? Perhaps GM should sit down and review their list price strategy. These incentives are much too high, and in many states (like mine) are subject to sales taxes.



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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Incentives of $3,500 tells one of two things. The car is either overpriced or they are losing money on each one sold. Back in the days of the Vega, the dealer profit on them was around $200 each for the base model.

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    (Cruze) incentive spending rose to an average of $3,474 per vehicle from $3,196 through July, according to Autodata.
    The back-story to all those retail sales gains?

    Cruze Production was major fubar in Q1 so it is hard to gauge, August was a strong month, but still down YTD; 41K units or 25%.

    Not everybody, needs, buys (or can afford) a SUV/CUV, but the more I see them, the more I think they just blend-in, not sure the sleeker look was the answer.
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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Still need a sporty option. No the hatch is not it...

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Of course the reporter didn't provide all of the relevant details, what was the fleet % and rebate amount a year ago? As I recall, Cruze volume last year fluctuated greatly that leads me to think some months had either huge fleet sales or huge incentives, or both.

    Either way, great looking car that should sell well once they have the appropriate dealer supply. I am seeing quite a few, I never saw many of the previous gen Malibu or Cruze, now I'm starting to see quite a few of both. Though unscientific, I think it does show if you make what people want, they will buy.

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    "The arrival of the Cruze hatchback also should bolster sales for the nameplate. “We’re even more stoked about the hatchback,” Maheras said. “I just received my first one, and I’ve already got it sold. It sold in one day.”"

    Didn't know the hatch was already in showrooms. They Chevy web site doesn't have their build and price page up yet, the overview page still shows "Available Fall 2016".

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Starting to see them now but GM did not make this car very different or unique so it's in a gigantic fight with 15 other small cars.

    Personally I'm not all that excited about it. To me it looks too much like the old Civic crossed with a Hyundia.

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Quote Originally Posted by BlackGTP View Post
    Of course the reporter didn't provide all of the relevant details, what was the fleet % and rebate amount a year ago? As I recall, Cruze volume last year fluctuated greatly that leads me to think some months had either huge fleet sales or huge incentives, or both.

    Either way, great looking car that should sell well once they have the appropriate dealer supply. I am seeing quite a few, I never saw many of the previous gen Malibu or Cruze, now I'm starting to see quite a few of both. Though unscientific, I think it does show if you make what people want, they will buy.
    Gen I Cruze historically had very low incentives, they may have gone up a bit last year, not sure, but this is a new car, one of the reasons manufacturers come out with new cars, to leap-frog the competition and grow revenue.

    Chevrolet lost 4,000 units of retail sales in August YOY, yet the Cruze total sales grew by almost 8,000 units, if any conclusion can be drawn from that, it's that more sales for Cruze went to fleet in August of 2016.

    And speaking of fluctuations, that is exactly what has happened this year:

    Month / Sales ............. [ YOY % Change]

    April / 14,153 -32.4%
    May / 16,671 -29.8%
    June / 22,647 -12.9%
    July / 13,723 - 35.7%
    August / 22,342 +52.4%

    But again, the Cruze launch was not smooth, so who knows what is really going on, it could be something as simple as GM finally filling open fleet order in August, that they held back for the last few months, until retail channel was filled?
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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Quote Originally Posted by kool1 View Post
    Starting to see them now but GM did not make this car very different or unique so it's in a gigantic fight with 15 other small cars.

    Personally I'm not all that excited about it. To me it looks too much like the old Civic crossed with a Hyundai.
    This..............

    On a stage and alone the Cruze is very attractive, on paper it stacks up well, but when I see one on the road, completely uninspiring, nothing offensive, just ho-hum.

    Funny you mention "Old Civic" the last Honda I had was 250cc's and only had 2-wheels, and Civic has never been remotely interesting to me, however the new Civic has, when the Volt goes back and if we replace it, I will be giving that car a much harder look, based on sales, I'm not the only one.
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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    Quote Originally Posted by tnmats View Post
    "The arrival of the Cruze hatchback also should bolster sales for the nameplate. “We’re even more stoked about the hatchback,” Maheras said. “I just received my first one, and I’ve already got it sold. It sold in one day.”"

    Didn't know the hatch was already in showrooms. They Chevy web site doesn't have their build and price page up yet, the overview page still shows "Available Fall 2016".
    I was online looking today as well after spotting this story and yeah you still cannot build one. BTW I spent an hour at the dealer this AM to get the 'bu serviced, while there hopped in a Cruze Premier in the showroom. Nice car, first time I've been in a new one ('16) and I was impressed to say the least. Why they don't seem to be moving very quick, at least around here, is beyond me other than first year phobias or such. After sampling the interior which was black leather decided the black although not to my preference wasn't as bad as maybe we seem to think here sometimes.

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    I feel the last Cruze was a much better effort than this new one, at least aesthetically. My neighbor just bought one for his daughter and the car feels, drives, and rides more like a large car than a compact, unlike most other cars in this class that simply feel like a, well, cheap compact car. But I think GM is missing on pretty much every class of car when it comes to styling. Too much following the trends rather than setting them.

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    While I have not yet seen the Regional numbers for this year, I know (from execs at both stores) that both of the large Chevrolet dealers close to me have been very happy with the current Cruze sales.
    The first gen Cruze had been a big hit for the local stores, with steady sales for just about its entire existence... And that was with the Sonic selling well in the same
    showrooms, up until recently, when sales of the Sonic have fallen off a cliff. The new Cruze has sold just as steadily as the first gen did in these two locations (That's a good thing).

    I also know that in the same two dealerships, the new gen Malibu has been a hit, with the one store alone selling more than double the amount of $30k+ units already this year than the past 2 years combined of the previous model... Without major incentives. However, Impala sales, other than LTZ models, have collapsed in the same store.

    Now, this area (Southern NJ) has been a Honda stronghold for the past two decades. The new Civic is selling like gangbusters. One of the Chevrolet dealerships I mentioned earlier is part of an auto mall where Honda is also a brand. The Civic always outsold the Cruze in their location, although the Cruze sold well for a Chevrolet compact in this area. But for the first time in years, the Civic is actually pulling further away in sales from the Cruze at this location. The new Civic simply appeals to many buyers in this area. It probably doesn't hurt that the new Civic, besides being a very good offering, is a significant departure in design from the previous model. That could give those who purchased a Civic 5-7 years ago a real reason to trade up... And though I don't think I'd call it "handsome," it is interesting looking. No typical bland vanilla (read: Corolla) styling here.

    The new Cruze is "nice", especially in top trim... And the hatchback looks good too. But I don't think it has the design to compete long term with the established Civic. (I actually think the top trim level of the first gen Cruze was/is more handsome than the current top level. But I think the lower level models of the current Cruze look better than the previous model's lower trim levels... Odd, I know). Overall, the current Cruze is a good offering by Chevrolet.

    I'm hoping that Chevrolet finds a market for the hatchback... I believe they will. There are plenty of folks out there who love hatchbacks and the new Cruze HB is a very handsome one.

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    Re: Chevy Cruze Finds A Bearing; Aug Incentives Hit $3500; Hatchback Arriving At Deal

    I've seen quite a few here in foreign car loving Northern Virginia and recently had the chance to drive one while my car was in the shop. Not exactly the same as my Camaro, but certainly a competent and solid competitor that outclasses some of the Toyotas of my friends.
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    Quote Originally Posted by Ed753 View Post
    Quote Originally Posted by kool1 View Post
    Starting to see them now but GM did not make this car very different or unique so it's in a gigantic fight with 15 other small cars.

    Personally I'm not all that excited about it. To me it looks too much like the old Civic crossed with a Hyundai.
    This..............

    On a stage and alone the Cruze is very attractive, on paper it stacks up well, but when I see one on the road, completely uninspiring, nothing offensive, just ho-hum.

    Funny you mention "Old Civic" the last Honda I had was 250cc's and only had 2-wheels, and Civic has never been remotely interesting to me, however the new Civic has, when the Volt goes back and if we replace it, I will be giving that car a much harder look, based on sales, I'm not the only one.
    This Cruze stacks up in reality as well...Not just on paper. Cruze and Civic are easily the best in class right now...Mazda 3 is good but its not as well rounded as the Chevy and Honda.

    I would give this round to the Civic but the Cruze is right on its heel. Both are excellent cars.

    Personally I think the new Cruze looks great in the flesh. The design is a good balance of mature and boy racer. Too much of the boy racer look is a big turn off to me but I think the new Cruze does it tastefully.
    Last edited by Cruzin Chicago; 09-12-2016 at 09:14 PM.

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