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Couple of interesting numbers- full-size Chevy truck sales up 95.5%. Chevy passenger car sales actually down 1.7% (!!!). Cadillac steamrolled cars last month, up 90.7%, with Saab and Buick also showing strong gains. Pontiac (down 14.7%) and Saturn (down 4%) showed pretty clearly where the problem areas are at GM.
Good question- but there's a trend here. Cadillac rock 'n rolled themselves to some really stunning numbers, Buick and Saab had solid results. That's the upscale GM hitparade right there- the bread-and-butter stuff doesn't look like it works. I see 'Vette sales were off too, but the plant was down because of some key supplier issues and a paint rollover ('06 colors out early).
edit: I've actually seen a fair number of new Saabs with temps lately, come to think of it, but that might have to do with the area demographics.
Couple of interesting numbers- full-size Chevy truck sales up 95.5%. Chevy passenger car sales actually down 1.7% (!!!). Cadillac steamrolled cars last month, up 90.7%, with Saab and Buick also showing strong gains. Pontiac (down 14.7%) and Saturn (down 4%) showed pretty clearly where the problem areas are at GM.
Ford passenger car sales are almost a mirror-image of GM. Ford was up 21.4%, Mercury was down 19.2%, Lincoln down 11.1%, Jaguar down 31.5%, Volvo down 5.6%. Land Rover posted a gain of 15.3%
Last edited by polarbear; Jul 1, 2005 at 07:26 PM.
hmmm...
Begs the Question:
SAAB sales increased???? Huh???
May I enquire to someone (anyone) that has any reason why this may be?
Simple- GM's employee pricing allows for bigger discounts on the more expensive vehicles. This program allowed people that couldn't afford these cars before to get one in their garage now. When I was selling GM (back in the late 80's), Caddys had a 20% discount (from MSRP), while Cavaliers and S-10s had an 8-10% discount. Based solely on the discount structure, I figured Cadillac dealers would sell out of cars, while the Saturns and Cobalts went begging. Which is pretty much what happened.
Thats a little strange.
Employee discount downunder is based on:
1. Whether the vehicle is manufactured in Australia (if it is, means a greater % discount)
2. Demand for vehicle (greater demand = less likely to get a huge employee discount)
But as I have mentioned previously, we are just strange.
I think it goes back to my original statement that you can live without making a profit, but you can't live without cash-flow. GM needs to outrun their bondholders before key new product lines hit the showrooms. So far, the effort seems to be working.
It looks like trucks an SUV were the biggest winnerof this promo. My guess is GM had a inventory off trucks an SUVs that were backing up through the year an they have cleared out those inventories. I remember last year yowards the end off the year GM still had 04 HDs for sale whereas Ford were selling 05s in July. To much inventory just piled up on them they had to make a desperate move an it worked. But now in the coming months sales will dry up. People that wanted a new GM vehicle got one. In the end thismight backfire on GM. But it was a deperate move they had to make to clear inventories. Does Ford need this desperate move, NO. But will they have to follow suit. Only Bill Ford knows the answer. I bet hes not sleeping to well at night thinking about this.
The other side of the coin is that now there's a number of folks (judging from the numbers) that are driving a GM instead of brand X. This is something I'd really like to see the numbers on- if the product is good enough, there'll be a larger group of folks that will have GM on the shopping list the next time around.
I'm reminded of when Lexus introduced their new line of cars back in '90. BMW bought a big Lexus, took the car down to the last nut and bolt, and announced that there was no way they could build and sell that car profitably for $40,000. Their guess (probably accurate) was the car was underpriced, in relation to actual cost, by a good $10000. Fast forward five years, and Lexus had completely re-arranged the luxury car market...and that big lexus was selling for closer to $75,000.
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