GM forcast to be the only automaker to gain market share in June
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GM forcast to be the only automaker to gain market share in June
From Edmunds.com http://www.edmunds.com/help/about/pr...6/article.html
GM Only Bright Spot in June Car Sales with Dramatic 26 Percent Increase, Forecasts Edmunds.com
SANTA MONICA, CALIF. – June 27, 2005 – This month’s car sales will top 1.57 million units, a 9.4 percent increase over June 2004 (or 5.2 percent when adjusted for the one extra selling day this year), according to Edmunds.com, the premier online resource for automotive information.
The majority of the increase in June will come from General Motors. GM’s Employee Discount promotion boosted the automaker’s sales by a dramatic 26 percent compared to June 2004 (or 21 percent when adjusted for the number of selling days). Edmunds.com projects that GM will sell more than 475,000 units in June and increase its U.S. market share to over 30 percent. In fact, GM is predicted to be the only major automaker to post a market share gain this month. GM’s May 2005 market share was 25.4 percent.
“GM’s promotion succeeded not only in generating showroom traffic by creating a sense of urgency for the consumers, but also resulted in a significant market share gain –which is exactly what GM and its dealers needed after several months of declines,” observed Jesse Toprak, Edmunds.com Senior Analyst. “The one-price-shopping aspect of the program resulted in a promotion that made car shopping less stressful and simple. We expect GM to extend this promotion at least until the end of July.”
Edmunds.com’s current research and proprietary statistical models also predict that Chrysler will sell 211,000 units in June, resulting in a market share of 13.4 percent, down from 14.3 percent in May. Ford is predicted to sell 270,000 in June; this would cause Ford’s market share to slip to 17.2 percent in June, down from 17.6 percent last month.
Among Japanese automakers, Nissan is predicted to sell more than 99,000 units in June. Nissan’s market share is expected to remain in its May level, which was 6.3 percent. Toyota is expected to sell 193,000 units, which would result in the automaker losing market share – from 13.5 percent in May to 12.3 percent in June. Honda is predicted to sell 121,000 units and also lose market share – from 8.2 percent in May to 7.7 percent in June.
About Edmunds.com, Inc. (www.edmunds.com)
SANTA MONICA, CALIF. – June 27, 2005 – This month’s car sales will top 1.57 million units, a 9.4 percent increase over June 2004 (or 5.2 percent when adjusted for the one extra selling day this year), according to Edmunds.com, the premier online resource for automotive information.
The majority of the increase in June will come from General Motors. GM’s Employee Discount promotion boosted the automaker’s sales by a dramatic 26 percent compared to June 2004 (or 21 percent when adjusted for the number of selling days). Edmunds.com projects that GM will sell more than 475,000 units in June and increase its U.S. market share to over 30 percent. In fact, GM is predicted to be the only major automaker to post a market share gain this month. GM’s May 2005 market share was 25.4 percent.
“GM’s promotion succeeded not only in generating showroom traffic by creating a sense of urgency for the consumers, but also resulted in a significant market share gain –which is exactly what GM and its dealers needed after several months of declines,” observed Jesse Toprak, Edmunds.com Senior Analyst. “The one-price-shopping aspect of the program resulted in a promotion that made car shopping less stressful and simple. We expect GM to extend this promotion at least until the end of July.”
Edmunds.com’s current research and proprietary statistical models also predict that Chrysler will sell 211,000 units in June, resulting in a market share of 13.4 percent, down from 14.3 percent in May. Ford is predicted to sell 270,000 in June; this would cause Ford’s market share to slip to 17.2 percent in June, down from 17.6 percent last month.
Among Japanese automakers, Nissan is predicted to sell more than 99,000 units in June. Nissan’s market share is expected to remain in its May level, which was 6.3 percent. Toyota is expected to sell 193,000 units, which would result in the automaker losing market share – from 13.5 percent in May to 12.3 percent in June. Honda is predicted to sell 121,000 units and also lose market share – from 8.2 percent in May to 7.7 percent in June.
About Edmunds.com, Inc. (www.edmunds.com)
Last edited by Hoodshaker; Jun 27, 2005 at 02:07 PM.
Registered User
Joined: Dec 2000
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From: Ohio
Re: GM forcast to be the only automaker to gain market share in June
Whelp, this does nothing but confirm the notion that a big chunk of the sales during this employee pricing promotion have been conquest sales.
So far, I'd say this promotion has been about as good as you can get.
So far, I'd say this promotion has been about as good as you can get.
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Joined: Aug 1999
Posts: 2,610
From: Cincinnati, OH
Re: GM forcast to be the only automaker to gain market share in June
Originally Posted by Darth Xed
Whelp, this does nothing but confirm the notion that a big chunk of the sales during this employee pricing promotion have been conquest sales.
So far, I'd say this promotion has been about as good as you can get.
So far, I'd say this promotion has been about as good as you can get.
Regardless, LaNeve is the man. I imagine he's going to have quite a bit of fun (and success) if GM starts putting out kick *** products.
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Joined: Dec 2000
Posts: 8,504
From: Ohio
Re: GM forcast to be the only automaker to gain market share in June
Originally Posted by Chuck!
We can only hope that the GM cars are good enough for the people who bought them to consider a new GM vehicle in 3-4 years when they trade it in.
Regardless, LaNeve is the man. I imagine he's going to have quite a bit of fun (and success) if GM starts putting out kick *** products.
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
Re: GM forcast to be the only automaker to gain market share in June
Very impressive. That was a very creative way to clear out the old 2005 inventory and grab some market share at the same time.
My dad bought a Truck. He got a Colorado Crew cab Z71 for $22,500 ($1300 was GM card)
My dad bought a Truck. He got a Colorado Crew cab Z71 for $22,500 ($1300 was GM card)
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Joined: Dec 2000
Posts: 8,504
From: Ohio
Re: GM forcast to be the only automaker to gain market share in June
FWIW... I looked into trading in my wife's Grand Prix early off lease, but it just didn't pay to make a move since we didn't qualify for the Lease Pull Ahead yet... no sense in giving the car back, and continuing to pay the payments... so, no move for us during this promotion, but that is simply because of our lease terminsation dates.
My sister-in-law is looking at trading in their 2004 Ford Freestar on a new GM minivan... I looked on GMBuyPower on our dealers lot (our dealer sells Chevy/Pontiac/GMC/Buick/Cadillac)... printed out info in stock Uplanders, Montana SV6's, and Terazza's....
Looks like you get more for your money with the Buick from the equipment lists, so she may go make a deal today for a new Buick Terazza....
My mom is also considering dumping her Dodge Stratus.....
My sister-in-law is looking at trading in their 2004 Ford Freestar on a new GM minivan... I looked on GMBuyPower on our dealers lot (our dealer sells Chevy/Pontiac/GMC/Buick/Cadillac)... printed out info in stock Uplanders, Montana SV6's, and Terazza's....
Looks like you get more for your money with the Buick from the equipment lists, so she may go make a deal today for a new Buick Terazza....
My mom is also considering dumping her Dodge Stratus.....
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Joined: Jun 2002
Posts: 2,979
Re: GM forcast to be the only automaker to gain market share in June
There we go...
Oh yeah...
It's nice to poke the bad guys in the eyes for once instead of continually being poked.
Now, gotta concentrate on the dealer experience, and after-sale support and all that good stuff.
Now that you've taken some of their customers away, KEEP THEM.
"Halten was zu halten ist"
Oh yeah...
It's nice to poke the bad guys in the eyes for once instead of continually being poked.
Now, gotta concentrate on the dealer experience, and after-sale support and all that good stuff.
Now that you've taken some of their customers away, KEEP THEM.
"Halten was zu halten ist"
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Joined: Sep 1998
Posts: 4,320
From: Memphis
Re: GM forcast to be the only automaker to gain market share in June
GM's employee discount is a brilliant marketing campaign and should get them a lot of loyal customers back if their current models truely are well-made and built to last. If they're just more cars to **** people off to where they say "well at least I didn't pay too much for this heap", then they're just delaying the inevitable. Only time will tell.
I heard a couple of dodge commercials on the radio trying to make fun of the employee discount, but under the surface that just makes it more obvious that they're hurting in the sales department because of this latest campaign of their competitor's.
I heard a couple of dodge commercials on the radio trying to make fun of the employee discount, but under the surface that just makes it more obvious that they're hurting in the sales department because of this latest campaign of their competitor's.
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Joined: Jul 2003
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From: cinci
Re: GM forcast to be the only automaker to gain market share in June
Originally Posted by Threxx
GM's employee discount is a brilliant marketing campaign and should get them a lot of loyal customers back if their current models truely are well-made and built to last. If they're just more cars to **** people off to where they say "well at least I didn't pay too much for this heap", then they're just delaying the inevitable. Only time will tell.
I heard a couple of dodge commercials on the radio trying to make fun of the employee discount, but under the surface that just makes it more obvious that they're hurting in the sales department because of this latest campaign of their competitor's.
I heard a couple of dodge commercials on the radio trying to make fun of the employee discount, but under the surface that just makes it more obvious that they're hurting in the sales department because of this latest campaign of their competitor's.
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Joined: Apr 2002
Posts: 2,154
From: All around
Re: GM forcast to be the only automaker to gain market share in June
Its very "gimmicky" but its also working. And provided it continues like this through July, GM should do very well in the mean time for sales.
My eyes will be peeled when they come OFF the promotion though, and where prices go afterward...
My eyes will be peeled when they come OFF the promotion though, and where prices go afterward...
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Joined: Mar 2001
Posts: 3,376
From: Sarasota FL
Re: GM forcast to be the only automaker to gain market share in June
We're so happy with it...plus, we've heard rumors it may go until all the '05s are gone!!!
Hey, its getting even me into a new car, and I didn't plan to buy at all. I have a hold on a $32,795 loaded GP GXP with everything but nav and XM. The GMS special is $27,100. But, with my GM card points and the fact that the dealer will give me the dealer kickback for selling the car (that oh-so-pitiful # that Buickman is ranting about
), I pay $24,000 flat for this car
Anyone who wants a "4 door Camaro" and can live with FWD, between the PBR/cross drilled brakes, the Bilstein struts, the LS4, the tap-shift and the wider/narrower front and rear tires, this car just screams "bad ***" at the top of its lungs. Its still not my favorite styling, as I've b!tched about on here a million times. But that car's a runner, and its the total package in terms of handling/acceleration/braking.
And no redzed, I still don't know how the g meter works
Hey, its getting even me into a new car, and I didn't plan to buy at all. I have a hold on a $32,795 loaded GP GXP with everything but nav and XM. The GMS special is $27,100. But, with my GM card points and the fact that the dealer will give me the dealer kickback for selling the car (that oh-so-pitiful # that Buickman is ranting about
), I pay $24,000 flat for this car Anyone who wants a "4 door Camaro" and can live with FWD, between the PBR/cross drilled brakes, the Bilstein struts, the LS4, the tap-shift and the wider/narrower front and rear tires, this car just screams "bad ***" at the top of its lungs. Its still not my favorite styling, as I've b!tched about on here a million times. But that car's a runner, and its the total package in terms of handling/acceleration/braking.
And no redzed, I still don't know how the g meter works
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Joined: Nov 2001
Posts: 1,178
From: Payson, AZ USA
Re: GM forcast to be the only automaker to gain market share in June
I'm happy that GM is doing well with this promotion.
My problem with it, is the same as with the massive incentives, however. All your doing is stealing sales from the future. What do you think will happen when the promotion ends??? Or, is GM going to keep doing it forever, like they did with the rebates???
Maybe its just me. I thought I read that GM was getting off the rebate train. Well, maybe they are just jumping on the employee discount train. Same problem, different name.
I guess I'm just disappointed in all of this. All of the manufacturers have to know that this is getting them nowhere fast. The big 2.5 just need to cut prices to reasonable, and dramatically pare down the incentives. It may hurt for a few months, but it should help in the long run. Of course, stock market analysts don't even know what the term "in the long run" means.
My problem with it, is the same as with the massive incentives, however. All your doing is stealing sales from the future. What do you think will happen when the promotion ends??? Or, is GM going to keep doing it forever, like they did with the rebates???
Maybe its just me. I thought I read that GM was getting off the rebate train. Well, maybe they are just jumping on the employee discount train. Same problem, different name.
I guess I'm just disappointed in all of this. All of the manufacturers have to know that this is getting them nowhere fast. The big 2.5 just need to cut prices to reasonable, and dramatically pare down the incentives. It may hurt for a few months, but it should help in the long run. Of course, stock market analysts don't even know what the term "in the long run" means.
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Joined: Jul 2003
Posts: 3,769
From: cinci
Re: GM forcast to be the only automaker to gain market share in June
Originally Posted by 94LightningGal
I'm happy that GM is doing well with this promotion.
My problem with it, is the same as with the massive incentives, however. All your doing is stealing sales from the future. What do you think will happen when the promotion ends??? Or, is GM going to keep doing it forever, like they did with the rebates???
Maybe its just me. I thought I read that GM was getting off the rebate train. Well, maybe they are just jumping on the employee discount train. Same problem, different name.
I guess I'm just disappointed in all of this. All of the manufacturers have to know that this is getting them nowhere fast. The big 2.5 just need to cut prices to reasonable, and dramatically pare down the incentives. It may hurt for a few months, but it should help in the long run. Of course, stock market analysts don't even know what the term "in the long run" means.
My problem with it, is the same as with the massive incentives, however. All your doing is stealing sales from the future. What do you think will happen when the promotion ends??? Or, is GM going to keep doing it forever, like they did with the rebates???
Maybe its just me. I thought I read that GM was getting off the rebate train. Well, maybe they are just jumping on the employee discount train. Same problem, different name.
I guess I'm just disappointed in all of this. All of the manufacturers have to know that this is getting them nowhere fast. The big 2.5 just need to cut prices to reasonable, and dramatically pare down the incentives. It may hurt for a few months, but it should help in the long run. Of course, stock market analysts don't even know what the term "in the long run" means.
).I think it will continue doing well, especially if they extend it just a little bit. I think if they make a big deal of lowering msrps and offer only $1000-1500 rebates, it will end up being a success. The key, like everyone is saying, is getting people in the door and getting them to buy after this promotion. Personally, I think it is an awesome idea as I've never seen so many GM dealerships alive and vibrant (as I know since my sister is looking for a used Grand Am.)
If they make a big enough "stink" about lowering msrp's, then get more people in as referrals from friends (as good service at the dealer would help, which is why my grandma continually goes to the same dealer for every new car she gets.) then I count it as a success. Whoever thought of it seems to have something I think, if they play their cards right afterwards.
Sorry for the length
.
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From: northeast Miss.
Re: GM forcast to be the only automaker to gain market share in June
Id also like to add that although i've yet to buy a new one, i've watched dear old Dad buy a few well under MSRP after the haggling is done. They made money then and im sure they're making plenty now. Especially considering that he always got them at least 2K under. I really doubt a thousand is hurting GM when the market share has gone from what?? 22 to 30%?
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Posts: 2,298
From: Detroit, MI USA
Re: GM forcast to be the only automaker to gain market share in June
There is no question that this promotion 'pulled ahead' some sales. If you were even 'thinking' about a new car or truck, this was the deal. BUT.....our dealers are telling us that there are many many more conquest sales from the promotion......
You are correct in that our cars and trucks have to more than satisfy if we're to keep these new owners in new GM products down the road.
Not only did the promotion put "fannies in seats"...it cleared the 05 inventory and also kept assembly plants from closing temporarily.....and let me tell you, closing a plant for even one week involves costs that will make your teeth and hair follicles hurt!
You are correct in that our cars and trucks have to more than satisfy if we're to keep these new owners in new GM products down the road.
Not only did the promotion put "fannies in seats"...it cleared the 05 inventory and also kept assembly plants from closing temporarily.....and let me tell you, closing a plant for even one week involves costs that will make your teeth and hair follicles hurt!