GM sales down sharply in July..
08-01-2007, 12:50 PM
#1
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GM sales down sharply in July..
News just broke that General Motors had a 22 percent drop in sales in the month of July.
http://money.cnn.com/
http://money.cnn.com/
Last edited by johnsocal; 08-01-2007 at 12:54 PM.
08-01-2007, 02:26 PM
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I'm seriously tired of articles like this that fail to mention any promotions that were going on at the time.
If sales are down 22% compared to last July but last July GM was giving away much larger rebates and such then the stat is invalid. Partially because you'd expect them to sell less this year by default and partly because they're also probably making a greater profit margin per vehicle.
If sales are down 22% compared to last July but last July GM was giving away much larger rebates and such then the stat is invalid. Partially because you'd expect them to sell less this year by default and partly because they're also probably making a greater profit margin per vehicle.
08-01-2007, 02:36 PM
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reading the article, Toyota was down 7%. Maybe not as many people bought cars last month.
I agree that the articles do not mention what was happening last year and they should.
Finally, why report this EVERY MONTH. That is way too short term. Longer term sales are what is important.
I agree that the articles do not mention what was happening last year and they should.
Finally, why report this EVERY MONTH. That is way too short term. Longer term sales are what is important.
08-01-2007, 02:54 PM
#6
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Biggest losses:
Buick sales down over 26%.
Chevrolet down nearly 22%.
Pontiac down 23.6%
Models of note:
Buick's Lacrosse plunged 47%.
Cadillac CTS and STS both lost sales over last year of 29% .
Cadillac's DTS was UP 15%.
The Chevrolet with the biggest sales drop (while still being in production):
Chevrolet Malibu: Down 45%.
The Chevrolet that fared best:
Chevrolet Corvette: down 11%.
Over at Pontiac, all cars dropped over 20% from last year.... except one.
The Pontiac Solstice. It climbed 13% over last year's sales figures.
Infact, so few GM non commercial vehicles experienced sales gains over last year, you can actually list them:
Solstice: up 13%
Sky: up 10.5%
DTS: up 15%
Escalade: up 21.6%
Escalade EXT: up 49.4%
SRX: up 5.9%
Suburban: up 17.3%
Trailblazer: up 9.8%
Essentially, the good news at GM is at the high end and specialty cars, as it seems average buyers. are either holding out for better deals or moving to other brands.
Also worth considering is that GM is stepping back from incentives to move their models this year. It may mean moving fewer models, but that should be offset by savings. When you look at the models that experienced the biggest hits, the lack of incentives seem like a key reason.
But there's another side to that coin. It can be said that some of these cars were so bad that GM needed to pay people to buy them. That probally isn't too far fetched looking at the sales meltdown of the Buick Lacrosse & Chevrolet Malibu.
Although the Aveo is down 2% over last year, when compared with the rest of GM's sales picture, Aveo is actually doing extremely well.
Buick sales down over 26%.
Chevrolet down nearly 22%.
Pontiac down 23.6%
Models of note:
Buick's Lacrosse plunged 47%.
Cadillac CTS and STS both lost sales over last year of 29% .
Cadillac's DTS was UP 15%.
The Chevrolet with the biggest sales drop (while still being in production):
Chevrolet Malibu: Down 45%.
The Chevrolet that fared best:
Chevrolet Corvette: down 11%.
Over at Pontiac, all cars dropped over 20% from last year.... except one.
The Pontiac Solstice. It climbed 13% over last year's sales figures.
Infact, so few GM non commercial vehicles experienced sales gains over last year, you can actually list them:
Solstice: up 13%
Sky: up 10.5%
DTS: up 15%
Escalade: up 21.6%
Escalade EXT: up 49.4%
SRX: up 5.9%
Suburban: up 17.3%
Trailblazer: up 9.8%
Essentially, the good news at GM is at the high end and specialty cars, as it seems average buyers. are either holding out for better deals or moving to other brands.
Also worth considering is that GM is stepping back from incentives to move their models this year. It may mean moving fewer models, but that should be offset by savings. When you look at the models that experienced the biggest hits, the lack of incentives seem like a key reason.
But there's another side to that coin. It can be said that some of these cars were so bad that GM needed to pay people to buy them. That probally isn't too far fetched looking at the sales meltdown of the Buick Lacrosse & Chevrolet Malibu.
Although the Aveo is down 2% over last year, when compared with the rest of GM's sales picture, Aveo is actually doing extremely well.
08-01-2007, 03:32 PM
#7
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Auto Makers Report Weak Sales for July
Perhaps this will shed more lignt...
From the Wall Street Journal; August 1, 2007 4:19 p.m.
From the Wall Street Journal; August 1, 2007 4:19 p.m.
Auto makers from Detroit to Tokyo posted lower July U.S. sales Wednesday as the U.S. housing market downturn and high gas prices depressed demand. Ford Motor Co. slid behind Japan's Toyota Motor Corp. for the month, as it struggles to retain the No. 2 sales ranking in its home market.
General Motors Corp., the largest U.S. auto maker, said July light-vehicle sales dropped 22% from a year ago. Ford posted a 19% drop in sales of cars and light trucks, as it continued to slash sales to rental-car fleets. Chrysler Group posted an 8.4% decline to its lowest level in four and a half years, and Toyota posted a 7.3% decrease for the month.
Industrywide, light vehicles sold at a seasonally adjusted annualized rate of 15.54 million units last month, down from 15.6 million in June and 17.19 million units in July 2006, according to a preliminary tally by Autodata Corp.
GM said sales of cars and light trucks stood at 315,870 in July, down from 406,298 a year earlier. Sales of light trucks fell 20% to 196,004, while car sales fell 26% to 119,866.
There were 24 selling days last month, versus 25 days a year ago.
It was GM's second-straight percentage drop for monthly sales in the double digits and came a day after the company said it swung to a second-quarter profit.
"We expected the month would provide a tough year-over-year comparison since in July 2006 industry sales were exceptionally strong and we were aggressively liquidating past model year inventories," said Mark LaNeve, GM's vice president for North American sales, service and marketing. "On the upside, we are pleased with the continuing success of our new products."
GM is under pressure to deflate bloated inventories while controlling incentive spending. GM kept its third-quarter North American production forecast unchanged at 1.075 million vehicles, and said it built 254,000 vehicles in the region during July, up 27% from a year ago.
Generally analysts had expected U.S. light-vehicle sales for July to fall from a year ago, possibly to their lowest level for the month in a decade, as the ailing U.S. housing market and high gas prices weighed on consumers.
The slowdown in the home-construction market has been particularly tough on Detroit's lucrative pickup truck market. Before Wednesday's sales were announced, Autodata Corp. said pickup sales for the Big Three through June were off 5.6% so far this year, compared with a 3.8% drop in total pickup sales.
Ford's Sales Slump
Ford's drop in U.S. sales came as it slashed sales to rental fleets by 57%. Ford retail sales, which exclude fleet sales, fell 17%. Ford, like GM and Chrysler, has reined in low-margin sales to rental-car companies in an effort to either stabilize or increase more lucrative sales to customers at dealerships. Auto makers have also seen truck and sport-utility vehicle sales tumble as buyers opt for more fuel-efficient passenger cars and crossovers.
Mark Fields, Ford's president of the Americas, said: "We know we have a lot of work to do, and July is a sobering reminder of the economic and competitive challenges we face."
Ford, which is expected to be unseated by Toyota as the second-largest U.S. auto maker sometime this year, said it sold 194,313 cars and light trucks in July, compared with 240,291 a year earlier. The Dearborn, Mich., company's passenger-car sales fell 33% to 60,088, while sales of trucks and SUVs -- representing Ford's most profitable business -- were down 11% to 135,157.
Sales of Ford's "crossover" vehicles, such as the Ford Edge and Lincoln MKX, jumped 40%.
Ford's results come a week after the auto maker surprised Wall Street with its first reported profit in two years. Chief Executive Alan Mulally warned that the company faces a "difficult" second half as it races to reduce capacity to match falling sales in the U.S. Ford also confirmed that it is looking to sell its Jaguar and Land Rover luxury brands, and is conducting a strategic review of its Volvo brand.
Ford didn't update its production forecasts. The company expected to build 640,000 vehicles in the third quarter, down from 642,000 a year ago.
Toyota Sales Slip
Toyota's July sales of cars and light trucks in the U.S. fell 7.3% amid the downturn in the housing industry, but the company managed to gain ground on Ford in the battle for the title of No. 2 U.S. auto maker.
The Japanese auto maker said it sold 224,058 vehicles in July, compared with 241,826 a year ago, edging back ahead of Ford in monthly sales. Toyota slipped behind Ford in sales in June, after topping it in May and in January. Nevertheless, Toyota is expected to unseat Ford as the No. 2 U.S. auto maker sometime this year. July 2006 was the first time Toyota beat Ford. In the first seven months of 2007, Ford has outsold Toyota by 18,765 vehicles.
Toyota Motor Sales USA Inc. Executive Vice President Jim Lentz said: "The industry stumbled this month, on continued housing weakness. Though Toyota didn't match last July's record-setting sales, heightened demand for hybrids and crossovers is reassuring." Toyota division sales for July fell 8.4% to 196,917. Lexus division sales rose 0.7% to 27,141.
Nissan Motor Co. recorded a 1.7% gain in U.S. sales last month, while Honda Motor Co.'s U.S. sales fell 7.1%.
Unlike the major Detroit auto makers, who have tried to wean themselves off costly incentives such as rebates and no-interest loans, Toyota and Honda stepped up incentives spending in an effort to cope with weakened demand. Through July, Toyota offered 0% financing, or up to $3,500 cash back, on all models of its lucrative Tundra pickup trucks, amid the U.S. housing market downturn, which has hurt pickup-truck sales. Dealers expect the auto maker to back off those incentives in August.
Chrysler Group, which is being sold to private-equity firm Cerberus Capital Management, posted total sales of 137,728 vehicles for the month, down from 150,349 a year earlier. Chrysler consists of the Chrysler, Jeep and Dodge brands and is a heavy seller of trucks and sport-utility vehicles. Chrysler's July sales were the worst for any month since January 2003.
The German parent company's luxury Mercedes-Benz USA division posted a 14% drop in July sales to 18,586.
Chrysler, which derives more than 70% of its revenue from truck and SUV sales, has been especially hurt by rising gasoline prices.
General Motors Corp., the largest U.S. auto maker, said July light-vehicle sales dropped 22% from a year ago. Ford posted a 19% drop in sales of cars and light trucks, as it continued to slash sales to rental-car fleets. Chrysler Group posted an 8.4% decline to its lowest level in four and a half years, and Toyota posted a 7.3% decrease for the month.
Industrywide, light vehicles sold at a seasonally adjusted annualized rate of 15.54 million units last month, down from 15.6 million in June and 17.19 million units in July 2006, according to a preliminary tally by Autodata Corp.
GM said sales of cars and light trucks stood at 315,870 in July, down from 406,298 a year earlier. Sales of light trucks fell 20% to 196,004, while car sales fell 26% to 119,866.
There were 24 selling days last month, versus 25 days a year ago.
It was GM's second-straight percentage drop for monthly sales in the double digits and came a day after the company said it swung to a second-quarter profit.
"We expected the month would provide a tough year-over-year comparison since in July 2006 industry sales were exceptionally strong and we were aggressively liquidating past model year inventories," said Mark LaNeve, GM's vice president for North American sales, service and marketing. "On the upside, we are pleased with the continuing success of our new products."
GM is under pressure to deflate bloated inventories while controlling incentive spending. GM kept its third-quarter North American production forecast unchanged at 1.075 million vehicles, and said it built 254,000 vehicles in the region during July, up 27% from a year ago.
Generally analysts had expected U.S. light-vehicle sales for July to fall from a year ago, possibly to their lowest level for the month in a decade, as the ailing U.S. housing market and high gas prices weighed on consumers.
The slowdown in the home-construction market has been particularly tough on Detroit's lucrative pickup truck market. Before Wednesday's sales were announced, Autodata Corp. said pickup sales for the Big Three through June were off 5.6% so far this year, compared with a 3.8% drop in total pickup sales.
Ford's Sales Slump
Ford's drop in U.S. sales came as it slashed sales to rental fleets by 57%. Ford retail sales, which exclude fleet sales, fell 17%. Ford, like GM and Chrysler, has reined in low-margin sales to rental-car companies in an effort to either stabilize or increase more lucrative sales to customers at dealerships. Auto makers have also seen truck and sport-utility vehicle sales tumble as buyers opt for more fuel-efficient passenger cars and crossovers.
Mark Fields, Ford's president of the Americas, said: "We know we have a lot of work to do, and July is a sobering reminder of the economic and competitive challenges we face."
Ford, which is expected to be unseated by Toyota as the second-largest U.S. auto maker sometime this year, said it sold 194,313 cars and light trucks in July, compared with 240,291 a year earlier. The Dearborn, Mich., company's passenger-car sales fell 33% to 60,088, while sales of trucks and SUVs -- representing Ford's most profitable business -- were down 11% to 135,157.
Sales of Ford's "crossover" vehicles, such as the Ford Edge and Lincoln MKX, jumped 40%.
Ford's results come a week after the auto maker surprised Wall Street with its first reported profit in two years. Chief Executive Alan Mulally warned that the company faces a "difficult" second half as it races to reduce capacity to match falling sales in the U.S. Ford also confirmed that it is looking to sell its Jaguar and Land Rover luxury brands, and is conducting a strategic review of its Volvo brand.
Ford didn't update its production forecasts. The company expected to build 640,000 vehicles in the third quarter, down from 642,000 a year ago.
Toyota Sales Slip
Toyota's July sales of cars and light trucks in the U.S. fell 7.3% amid the downturn in the housing industry, but the company managed to gain ground on Ford in the battle for the title of No. 2 U.S. auto maker.
The Japanese auto maker said it sold 224,058 vehicles in July, compared with 241,826 a year ago, edging back ahead of Ford in monthly sales. Toyota slipped behind Ford in sales in June, after topping it in May and in January. Nevertheless, Toyota is expected to unseat Ford as the No. 2 U.S. auto maker sometime this year. July 2006 was the first time Toyota beat Ford. In the first seven months of 2007, Ford has outsold Toyota by 18,765 vehicles.
Toyota Motor Sales USA Inc. Executive Vice President Jim Lentz said: "The industry stumbled this month, on continued housing weakness. Though Toyota didn't match last July's record-setting sales, heightened demand for hybrids and crossovers is reassuring." Toyota division sales for July fell 8.4% to 196,917. Lexus division sales rose 0.7% to 27,141.
Nissan Motor Co. recorded a 1.7% gain in U.S. sales last month, while Honda Motor Co.'s U.S. sales fell 7.1%.
Unlike the major Detroit auto makers, who have tried to wean themselves off costly incentives such as rebates and no-interest loans, Toyota and Honda stepped up incentives spending in an effort to cope with weakened demand. Through July, Toyota offered 0% financing, or up to $3,500 cash back, on all models of its lucrative Tundra pickup trucks, amid the U.S. housing market downturn, which has hurt pickup-truck sales. Dealers expect the auto maker to back off those incentives in August.
Chrysler Group, which is being sold to private-equity firm Cerberus Capital Management, posted total sales of 137,728 vehicles for the month, down from 150,349 a year earlier. Chrysler consists of the Chrysler, Jeep and Dodge brands and is a heavy seller of trucks and sport-utility vehicles. Chrysler's July sales were the worst for any month since January 2003.
The German parent company's luxury Mercedes-Benz USA division posted a 14% drop in July sales to 18,586.
Chrysler, which derives more than 70% of its revenue from truck and SUV sales, has been especially hurt by rising gasoline prices.
08-01-2007, 04:08 PM
#8
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Location: Cincinnati, OH
Posts: 2,612
Aura sales are kinda interesting. This month sales are up 25% to the last two months:
July - 5800
June - 4700
May - 4700
April - 4300
5800 isn't anything too special, but I wonder what the upswing was from. Maybe its starting to build some name recognition?
The Accord and Camry still outsell it 5-7 to 1, but it'll be interesting to see how it plays out, along with what the new Malibu does to the crowded mid sized market.
July - 5800
June - 4700
May - 4700
April - 4300
5800 isn't anything too special, but I wonder what the upswing was from. Maybe its starting to build some name recognition?
The Accord and Camry still outsell it 5-7 to 1, but it'll be interesting to see how it plays out, along with what the new Malibu does to the crowded mid sized market.
08-01-2007, 04:25 PM
#10
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Location: South Bend , IN
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With the Grand Prix , Malibu , Cobalt , CTS all at the end of their life cycles , without the huge incentives they used to have ....why would this news be a surprise ? Plus the continued reduction in fleet sales and the drop in truck sales .
I think as far as the Aura is concerned , its just gonna take time for people to really buy that Saturn is what is now . I'll tell ya what though....I used to work for Saturn and still know alot people there , so Im qwik to recommend them . Ive refered 4 people in last couple months ( 3 of them had no plans to look at Saturn at all ) , and all 4 bought a brand new car ( 2 Aura's , 1 08 Vue and a Outlook ) They need to send me commissions
I think as far as the Aura is concerned , its just gonna take time for people to really buy that Saturn is what is now . I'll tell ya what though....I used to work for Saturn and still know alot people there , so Im qwik to recommend them . Ive refered 4 people in last couple months ( 3 of them had no plans to look at Saturn at all ) , and all 4 bought a brand new car ( 2 Aura's , 1 08 Vue and a Outlook ) They need to send me commissions
08-01-2007, 05:23 PM
#11
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Posts: 1,943
I'm seriously tired of articles like this that fail to mention any promotions that were going on at the time.
If sales are down 22% compared to last July but last July GM was giving away much larger rebates and such then the stat is invalid. Partially because you'd expect them to sell less this year by default and partly because they're also probably making a greater profit margin per vehicle.
If sales are down 22% compared to last July but last July GM was giving away much larger rebates and such then the stat is invalid. Partially because you'd expect them to sell less this year by default and partly because they're also probably making a greater profit margin per vehicle.
Over the next few days; everyone (who does such things) will chime in about all the reasons they think the results are what they are; manufacturers will always put their positive spin on things and everybody else will offer their opinions!
08-01-2007, 05:58 PM
#12
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I just saw this on the yahoo home page
http://biz.yahoo.com/ap/070801/auto_sales.html?.v=22
http://biz.yahoo.com/ap/070801/auto_sales.html?.v=22
08-01-2007, 07:49 PM
#13
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Anyone have numbers to compare 2Q '07 to 2Q '06? I'd be willing to bet that GM sold at, best, equal number of vehicles but they posted a profit this year. If that doesn't say anything about GM being more efficient, I don't know what does.
08-01-2007, 08:33 PM
#14
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GM's US sales are down just over 9% year to date.
GM's profits are mostly from growth in overseas markets (ie:China).
Direct from GM's own press release:
GMNA had adjusted net income from continuing operations of $78 million in the second quarter 2007 (reported net loss from continuing operations of $39 million), compared to adjusted net loss of $94 million from continuing operations (reported net loss from continuing operations of $3.95 billion) in the second quarter 2006.
GM Europe (GME) posted adjusted net income of $236 million for the quarter (reported net income of $217 million), compared to $143 million in the second quarter of 2006 (reported net loss of $39 million).
GM Asia Pacific (GMAP) recorded adjusted net income of $237 million in the second quarter (reported net income of $227 million), which marks a second-quarter net income record for the region, and compares with $164 million in the same quarter a year ago (reported net income of $376 million, which included $212 million from the sale of GM’s equity interest in Isuzu).
GM Latin America, Africa and Middle East (GMLAAM) continued to leverage explosive regional growth and its traditionally strong position in the region. GMLAAM posted its best quarterly net income in a decade with adjusted earnings of $213 million (reported net income also $213 million), compared to $155 million in the same quarter last year (reported net income of $139 million).
GM Europe (GME) posted adjusted net income of $236 million for the quarter (reported net income of $217 million), compared to $143 million in the second quarter of 2006 (reported net loss of $39 million).
GM Asia Pacific (GMAP) recorded adjusted net income of $237 million in the second quarter (reported net income of $227 million), which marks a second-quarter net income record for the region, and compares with $164 million in the same quarter a year ago (reported net income of $376 million, which included $212 million from the sale of GM’s equity interest in Isuzu).
GM Latin America, Africa and Middle East (GMLAAM) continued to leverage explosive regional growth and its traditionally strong position in the region. GMLAAM posted its best quarterly net income in a decade with adjusted earnings of $213 million (reported net income also $213 million), compared to $155 million in the same quarter last year (reported net income of $139 million).
