GM Reports 530,027 Deliveries in July, Up 20 Percent
Truck Deliveries Up 34.5 Percent, Record July and Second-Best-Ever Sales Month
All-Time Sales Record for Sport Utility Vehicles
Full-Size Pickup Sales Surge 54.5 Percent Setting a New July Record
Sales Up at Every Division

DETROIT -General Motors dealers in the U.S. sold 530,027 new cars and trucks in July, up 20 percent compared to year-ago sales and GM's best July sales since 1979. Truck deliveries (360,655) increased 34.5 percent, establishing a new record for July and posting the second-best-ever sales month, outpaced only by June 2005 industry-record truck deliveries. Deliveries of sport utility vehicles established an all-time industry sales record, with a 22 percent increase over year-ago levels.

Car sales (169,372) declined 3 percent, due to significantly reduced fleet sales. Retail car sales were up over 9 percent, led by strong retail sales of new vehicles, including Cadillac STS, Chevrolet Cobalt, Pontiac G6 and Buick LaCrosse. Every GM division posted sales increases for the month.

"Over one million Americans drove off in a new GM car or truck in the past two months," said Mark LaNeve, GM vice president, North America Vehicle Sales, Service and Marketing. "It's proof that an excellent vehicle, offered at an easily understood, fair price is compelling to consumers. Sales results for June and July demonstrate that once they experience our products, more and more Americans come to appreciate the high quality, tremendous value and benefits of owning a GM car or truck."

GM continued its truck sales leadership, led by an all-time sales record for utilities and the continuing surge of full-size pickup sales. Deliveries of Chevrolet full-size pickups (Silverado and Avalanche) increased 52 percent. Chevrolet Silverado (up 55 percent) and GMC Sierra (up 64 percent) each achieved second-best-ever sales months, surpassed only by June 2005 sales. Record sport utility sales were led by a 16 percent increase in large utility deliveries and small utility sales (Chevrolet Equinox and Saturn Vue), which improved 105 percent.

Retail car sales continue to gain momentum, paced by ongoing strong sales performance of several new vehicles. Total sales of GM's entry level cars were up 19 percent, with Chevrolet Cobalt achieving its best-ever sales. Luxury car sales rose 6 percent compared to year-ago levels, with sales increases by Cadillac CTS (up 25 percent) and XLR (up 37 percent), Chevrolet SSR (up 43 percent), Saab 9-2X and 9-3 (54 percent). Cadillac STS had its best sales since launch, beating the previous high mark set last month.

Cadillac sales were up 10 percent. A significant reduction in fleet sales was offset by strong retail sales, which were up 30 percent. Total car deliveries were up 11 percent, paced by record STS and CTS deliveries. CTS has set sales records in five of the last seven months. Escalade ESV and EXT both posted sales improvements in July. ESV was up 35 percent and EXT sales increased 16 percent.

Chevrolet posted its strongest July since 1978 as sales increased 18 percent, led by record truck sales, which were up 35 percent. This was the first time since March 1979 that Chevrolet posted consecutive months with more than 300,000 sales. In the full-size truck segment, Silverado was up 55 percent and Avalanche sales improved 28 percent. Among Chevrolet's newest trucks, Colorado continued its strong sales results, with a 34 percent increase, and Equinox had its best-ever sales with nearly twice the number of deliveries achieved last year. Aveo sales were up 57 percent.

GMC sales set a new July record, up 33 percent compared to record sales last year. GMC has strong sales across its portfolio, with gains by Sierra (up 64 percent), Canyon (up 68 percent), Yukon (up 28 percent) and Envoy (up 7 percent). Pontiac deliveries in July were up 9 percent, led by solid sales of the G6 and Vibe. Vibe set an all-time sales record, with deliveries up 36 percent.

Buick also posted strong sales in July, up 20 percent. LaCrosse sales were 79 percent higher than year-ago combined Century and Regal deliveries. LaCrosse has set month-over-month sales increases for seven of eight months since its launch.

The all-new HUMMER H3 continued its strong start with 4,664 sales in July, a 21 percent increase over June sales. This is noteworthy given that the H3 was not included in the GM Employee Discount for Everyone program. HUMMER easily surpassed its best-ever July sales with 7,476 deliveries, a 210 percent improvement compared to last year. H2 deliveries were 16 percent higher than year-ago levels.

Saturn had its best July since 2003, with sales improving 11 percent. Vue set a new July sales record with deliveries up 39.5 percent.

http://www.gm.com/company/investor_i...on/sales_prod/

Link to sales figures:

http://media.corporate-ir.net/media_...eries_0805.xls

 

Maybe it was in the article and I missed it when I scanned it, but accounting for the pricing that they had going on during that record sales month, how did their profit levels go? Up as well? If so, how far up relative to the sales increase?

One has to wonder, however, if they might have canabalized some of their future sales in the upcoming months (people that were planning on buying, say, maybe in October but 'jumped on this really great limited time offer'). Even so, I'm sure they also stole quite a few sales from the competition which is important if they intend to get people to 'come back' and give GM a chance for redemption, as stated in some of their earlier ad campaigns.

 

Since I've commented on GTO sales each month due to the huge gains it's had, I was interested to see how it'd do since it was yanked from the employee pricing for July...

Amazingly, it stayed even with last year, in a market where just about every other product out there had huge discounts (from GM and other manufacturers)! Also, keeping in mind that the July 04 numbers are for 04 GTO that had substantial rebates, and the July 05 numbers are for 05 GTO's with NO rebates.... makes it an even better figure for July GTO sales.


By comparison, the only other GM vehicle excluded from the program was Corvette... which suffered a 44% drop when compared to last year for July.... and that's with an all new model.

 

Oh, there's no doubt that some future sales have been cannibalized... but, I'd rather have your money sooner than later.... also, like you eluded to, GM says there have been a nice percentage of conquest sales from the program as well.

 

If I read everything correctly, the f-series is up on Chevy fullsize by only 10K YTD.

 

The manufacturer does not make money when the car is retailed, per se. The manufacturer makes money when the car is invoiced to a dealer.

Knowing that most Automotive plants were down for the first two weeks of July for model changeover and summer vacation, there were not as many vehicles built.

However, the figures show that dealer inventories are extremely low.......the 2005 models were cleared out......and dealers are now ordering 2006s......prior to this program, dealers were not anxious to order new cars and trucks with their lots filled with 2005s......

As to the profit picture.......that remains to be seen when the 3rd quarter results are published.

 

So it's basically a move to help dealers out so they can order new 2006 models?

Then why is Buickman so veheminently against it?

He's the only car salesman I know of who is (save that GM dealer in Honolulu who has essentially a monopoly), so I'm pretty baffled at that.

 

Which if its anything like 2nd quarter, will amount to more losses. Given the lower transaction prices, I don't see relief coming anytime soon. Factor in still escalating gas prices and the SUV's can't save the day for the General for too much longer.

However this employee pricing scheme has given GM a nice cushin on the 25% market share" break even" point. GMAC is also very worrying with the "junk" status that its parent General Motors carries.

GM has a long way to go, and building 20k niche vehicles prices at $19,995 is not the way to go about doing it. However building 100k $19,995 vehicles that the public lusts after is certainly very telling. Which I'm still waiting on an order date for my Solstice, mind you.

I don't mean to be negative here at all, just a realist and GM continues to pull the wool over enthusiasts eyes (those of us that sit, read the numbers daily, and disect the information as if it were a religion). These gimmick deals are not making the company money. GMAC has had to sell billions in debt to free more capitol.

2006 is supposed to be the "break through" year, but I thought 2004 was, then it was 2005. Now it's 2006. What happens when 2008 comes around and the new Camaro carries heavy cash rebates on top of the Generals "Total Value Promise?"

Things aren't peachy at the company, and the Union does not appear to be loosening the death grip on the jewels of the General which leads the company down a dark, dreary road.

We won't know until about 2008 or 2010 what shape the company is in. That's when I expect a market shake out so to speak.

One other thing, do not forget about the Chinese whom will make a very big splash at this years NAIAS, which is oh about a half mile from GM's World Headquarters. Pretty telling if you ask me.

 

Hey josh, whats up with C & G?


Anywho... For some reason, Im dissapointed with only 20 percent...

I really think, GM's sales ought to be coming from other companys not from no where... I'd really like to see Toyota put a non record month up, I'd like to see Hyundai not gain market share (although I used to like, and still drive a Hyundai they are part of the problem) I'd like to see Chevrolets have more value then any other automakers vehicles, but with all the "Me-Too's" in the industry it is difficult to market and preserve tremendous value, but look at the new Z06... thats value, compared to its competitors... the aveo, it may be small, and a good purposeful vehicle but ugg, it's ugly glare is radiating.

The Silverado should be such a margin ticket for GM, at my old work we would massively mark up things that people really wanted, but more specifically things that were incorperated into drugs like speed. Margin is ok on things that you are trying to discourage, but GM ought to have the same margin for a lot of there models. obviously the aveo will be less margin the the vette. but with quantity a model should make volume for margin.

 

The 3rd quarter will be one of the worst on record. Dealers had their pockets picked and are vehemently disturbed by GM's control over pricing.
Little understood are the finer points of GM strategy. For example the August lease on Rendevzous. They increased the lease rebate but simultaneously raised the lease rate significantly. This was most likely done to "show profit" at GMAC while reducing NA operating margin in order to prevent any profit sharing and continue pressure on the UAW for concessions. Current management is not to be trusted, which is why relations with suppliers, employees, and dealers is at an all-time low.

 

The Z06 isn't out right now. I think the Z06 counted for 1/3rd of Vette sales. People were also getting great deals on the 2004 C5's, since dealers were trying to clear them out for the brand new C6.

 

Little pessimistic are we? Things aren't peachy, but they're not hopeless either. You call GMS a "gimmick" that won't save the company. Well, it already has, IMO. Many, especially you IIRC, were predicting that GM would not make it through the summer. Now they will. Whenever you sell as many cars as GM has in the last two months - retail sales mind you - you will make some cash. Also, from everywhere I have read, transaction prices are not really lower then what they were with the heavy rebates and financing incentives. The reason this "gimmick" has caught fire is that it actually reduces the gimmicks normally involved in the dealer process. We bought a Cobalt yesterday. We looked up the GMS price on the internet, went to the dealer, and got the car for that price. A clear, fair price. That's what Americans have come to expect with every other purchasing experience. It's the reason Wal-Mart is the biggest company in the world.

As far as "breakthrough" years and GM's lack thereof, what do you expect? GM's problems are 30 years in the making, and won't be solved in one. In the meanwhile, what do you expect people like Lutz and LaNeve to say, "We expect to lose 1% of marketshare this year"? Would a baseball team owner tell sportswriters that he expects a .500 season from his team before season tickets go on sale? Of course they're going to say they expect a breakthough year!

In the same sense as one great year can't save GM, neither can one great product. Yes, Ford has a $19,995 vehicle that sell 100,000+ copies. Tell me, how is Ford doing?

Do you really think that a Camaro would carry cash on the hood? IMO, we would see no Camaro before we saw one in the showrooms, but with cash on the hood.

And finally, while the Chinese will be something to watch, but they will not immediately be a threat to anyone save the Koreans, who are moving up anyway. Besides, there is always a catostrophic, terrible threat waiting on the horizon. Here's a real duesy: Iran is about 2-3 years away from having nuclear weapons, and already has the armaments to carry them to Tel Aviv and our bases in S. Arabia and Iraq. Worry about that why don't you. I'm gonna just go to work tomorrow and hope for the best.

Yep, I was at a large dealer yesterday, they seem really disturbed about the fact that they had crowds of people in the showroom waiting to buy cars.
Also, explain to me again how you have the nerve to say that dealers have had "their pockets picked" by GMS even while you brag about a successful, profitable sales career based primarily upon selling cars at GM Employee prices to GM employees. It seems to have served you well enough, so how is it disasterous for other dealers?
Actually, what you describe here sounds like a decent plan to me. Make more money in the short term while continuing to pressure the UAW to ensure longterm survival. Is this stuff included anywhere in your Twenty Steps?

 

He shoots, he scores.....dav305z that is....

 

There is a big difference between selling a car to an actual employee vs. giving them away to the general public. Most apparently will not understand the failure of this strategy until 3rd and 4th quarter financials are released, some never will.

 

Even if, overall, the promotion loses money for the company... there are other benefits.

Also, you simply can not disregard the cost of shutting down all these plants if GM simply "did nothing" and continued to sell few vehicles... it probably would have cost more money overall to do that.

So, you potentially lose less money... move a lot of metal, and "put butts in seats", as a certain Martian like to say.... a lot of whom would not have bought a GM vehcile otherwise.

It's not all bad... even if there is a loss on the program.