GM's September sales down 24 percent
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From: five-one-oh/nine-oh-nine
Re: GM's September sales down 24 percent
Originally Posted by guionM
Some at GM can cough up inflation adjusted figures showing that gas was far more expensive in '81, or the mid 70s (all true). But just 5 years ago, gas was going for 95 cents per gallon in San Francisco, and even just over a year and a half ago, it was around $1.50. Fuel prices rising this high & this fast is going to affect people's budgets and habits.
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From: Melbourne, Australia
Re: GM's September sales down 24 percent
Japanese SUVs also took a hit...
Trucks take the hit
Ford blamed its big drop on high gasoline prices, which have hurt SUV sales, and the success of its employee price incentive program, which motivated many consumers to buy in July and August.
Ford said sales of its mainstay Explorer SUV fell 57.7 percent in September to 12,879 units. Sales of the similar Mercury Mountaineer were down 54.0 percent to 1,771 units.
Sales of the full-sized Ford Expedition were down 60.6 percent for the month to 5,906 units.
GM said sales of its light trucks fell by 30.1 percent in September to 197,973 units. Sales of the Chevrolet Silverado were off 37.6 percent for the month, while GMC Sierra sales fell 31.2 percent.
Among the GM light trucks that have been on sale for at least a year, only the Hummer H1 and Saturn Vue posted increases in September.
Import trucks not immune
Japanese automakers saw their trucks take a hit, too.
Nissan Titan pickup sales fell 11.2 percent to 7,015 units, and Armada SUV sales fell 20.8 percent to 2,489 units in September. But sales of both vehicles are up by 16 percent for the year to date.
At Toyota, sales were down 19.2 percent for the Tundra pickup and 24.3 percent for the 4Runner SUV. Sales also fell in September for the Highlander, Land Cruiser and Sequoia SUVs.
At Honda, sales of the Pilot SUV dropped 25.8 percent in September. Sales were also down for the Acura MDX, and Honda CR-V and Element SUVs
Shift to cars
But the sales declines in trucks at import automakers were more than offset by gains in car sales.
Toyota Camry sales rose 6.4 percent in September to 36,842 units, and Toyota sold 8,707 copies of the Avalon sedan.
Honda reported double-digit sales increases for the Accord and Civic. The redesigned 2006 Civic went on sale in mid-September.
Toyota and Honda said September was a record-setting month for sales of their hybrid vehicles.
At Nissan, the Altima and Sentra sedans were key drivers in September. Altima sales of 26,442 units were up 24.2 percent, while Sentra sales of 11,172 were up 65.8 percent.
http://www.autoweek.com/news.cms?newsId=103312
Ford blamed its big drop on high gasoline prices, which have hurt SUV sales, and the success of its employee price incentive program, which motivated many consumers to buy in July and August.
Ford said sales of its mainstay Explorer SUV fell 57.7 percent in September to 12,879 units. Sales of the similar Mercury Mountaineer were down 54.0 percent to 1,771 units.
Sales of the full-sized Ford Expedition were down 60.6 percent for the month to 5,906 units.
GM said sales of its light trucks fell by 30.1 percent in September to 197,973 units. Sales of the Chevrolet Silverado were off 37.6 percent for the month, while GMC Sierra sales fell 31.2 percent.
Among the GM light trucks that have been on sale for at least a year, only the Hummer H1 and Saturn Vue posted increases in September.
Import trucks not immune
Japanese automakers saw their trucks take a hit, too.
Nissan Titan pickup sales fell 11.2 percent to 7,015 units, and Armada SUV sales fell 20.8 percent to 2,489 units in September. But sales of both vehicles are up by 16 percent for the year to date.
At Toyota, sales were down 19.2 percent for the Tundra pickup and 24.3 percent for the 4Runner SUV. Sales also fell in September for the Highlander, Land Cruiser and Sequoia SUVs.
At Honda, sales of the Pilot SUV dropped 25.8 percent in September. Sales were also down for the Acura MDX, and Honda CR-V and Element SUVs
Shift to cars
But the sales declines in trucks at import automakers were more than offset by gains in car sales.
Toyota Camry sales rose 6.4 percent in September to 36,842 units, and Toyota sold 8,707 copies of the Avalon sedan.
Honda reported double-digit sales increases for the Accord and Civic. The redesigned 2006 Civic went on sale in mid-September.
Toyota and Honda said September was a record-setting month for sales of their hybrid vehicles.
At Nissan, the Altima and Sentra sedans were key drivers in September. Altima sales of 26,442 units were up 24.2 percent, while Sentra sales of 11,172 were up 65.8 percent.
http://www.autoweek.com/news.cms?newsId=103312
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From: Commerce, mi, USA
Re: GM's September sales down 24 percent
**Eeyore voice**
/**Eeyore voice** 
As previously mentioned, GMS to everyone was a huge mistake. The effects of the "giveaway" will linger indefintely having caused enormous damage to the GM brands and overall image. Hurricanes and gas prices didn't stop the Japanese, and neither will GM with their short-sighted, ludicrous marketing. If LaNeve and company had instituted Return to Greatness, we would have been already seeing a consistently improving sales curve, steadily rising market share, and profits that correspond with a rational, effective market strategy.
When the third quarter results are released, the true level of failure will be revealed, and the call for Wagoner to resign will be heard on a more widespread basis. As dealer pull back on '06 orders, the dismal outlook for the fourth quarter will come into focus as GM heads toward the worst year of operating losses in the corporation's history. My prediction is for a full year's loss in excess of $6,000,000,000. Cash reserves continue to dwindle, credit sinks deeper into junk status, and executives will continue to blame everyone and everything but themselves.
When the third quarter results are released, the true level of failure will be revealed, and the call for Wagoner to resign will be heard on a more widespread basis. As dealer pull back on '06 orders, the dismal outlook for the fourth quarter will come into focus as GM heads toward the worst year of operating losses in the corporation's history. My prediction is for a full year's loss in excess of $6,000,000,000. Cash reserves continue to dwindle, credit sinks deeper into junk status, and executives will continue to blame everyone and everything but themselves.
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From: five-one-oh/nine-oh-nine
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From: Bentonville, AR
Re: GM's September sales down 24 percent
A couple of great points were made in this thread:
If GMs are as reliable as the competition, why not jack up the warranties? Their cars might last as well as everyone else's, but if they aren't willing to stand behind it the same as everyone else, then what is there to convince the buyer that the product is as reliable?
Also, to say GM needs to react to the market faster is the greatest understatement of all time. Even when they do react to the market, many times they are the last horse to the finish line, and still get outclassed by the competition. A great example of this is the Silverado SS. No thanks, I'd still take a Lightning any day, they did it first, and they did it RIGHT.
The next Camaro and/or GTO will be the final test of my loyalty to GM. If these cars are screwed up, I am done, and jumping ship
If GMs are as reliable as the competition, why not jack up the warranties? Their cars might last as well as everyone else's, but if they aren't willing to stand behind it the same as everyone else, then what is there to convince the buyer that the product is as reliable?
Also, to say GM needs to react to the market faster is the greatest understatement of all time. Even when they do react to the market, many times they are the last horse to the finish line, and still get outclassed by the competition. A great example of this is the Silverado SS. No thanks, I'd still take a Lightning any day, they did it first, and they did it RIGHT.
The next Camaro and/or GTO will be the final test of my loyalty to GM. If these cars are screwed up, I am done, and jumping ship
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Joined: Mar 2001
Posts: 13,713
From: The Golden State
Re: GM's September sales down 24 percent
Originally Posted by morb|d
say what? I haven't seen prices lower than $1.40 in the Bay Area within the past 5 years. SF prices are almost always inflated above the rest of the region.
Kris93/95Z28, GM has certainly turned their quality around. I think a 6 year warranty will not only increase intrest in GM's cars, I think it would also eliminate the need for the latest profit-erasing, K-Mart-like sales promotion in order to sell cars.
Last edited by guionM; Oct 5, 2005 at 06:17 PM.
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Posts: 1,440
From: five-one-oh/nine-oh-nine
Re: GM's September sales down 24 percent
Originally Posted by guionM
Rest of the country was in the 80 cent range. SF was just under a dollar. Just before I moved down to San Diego the last time back in May 2000.
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Joined: Mar 2002
Posts: 3,180
From: Yadkinville, NC USA
Re: GM's September sales down 24 percent
Originally Posted by Kevin_G
I agree with everything you said above...but I have heard many here say the new GM truck lineup will be the barometer as to GM's future. It does not look good if the gas price issue effects sales.
I've said before that these two comapnies need to form some minimal alliances to share developmental costs and go after the imports mutually. Not a merger, not even a large sharing of technology or styling, but at least some joint ventures to develop transmissions, rear axles, crash systems, etc that they can amortize the developmental cost over more vehicles, thereby making themselves more profitable per unit. No one single platoon won WW-II alone, it took all of them working together, and I feel that the same will be critical for the American car company too.
What scares me right now is how dependent GM and Ford are on SUV and truck sales. They are sort of putting all their eggs in one basket, and now that basket is about to have the floor fall out of it due to fuel costs. Trucks/SUVs have been a safe-haven for GM and Ford in the last 10-15 years - a place where imports could not compete. Well, it still is kind of, but now the market is moving away from that segment, going back to cars (economical ones at that) where the importers have been a mainstay because GM and Ford literally conceeded this segment to the importers when they went truck-crazy in the last decade.
Here's an interesting article on futures for GM and Ford...
GM and Ford SUV Woes Concern Analysts
"Merrill Lynch analyst John Casesa echoed similar concerns. The domestic automakers, he wrote, "have the most to lose from this trend, as SUV sales represent a much larger proportion of their sales." He added, "We are growing increasingly concerned about the prospects of GM's new line of SUVs, which will be launched in January 2006."
"If the credit rating agency downgrades GM and Ford further into speculative status, it would signal that the automakers' business outlook and ability to pay off debts are growing riskier. As of June 30, GM had $284 billion in debt, and Ford had $158 billion, S&P said."
$158b and $284b is a LOT of debt guys.
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Joined: Aug 1998
Posts: 854
From: neverneverland
Re: GM's September sales down 24 percent
Originally Posted by ProudPony
Not just for GM, but for Ford as well.
I've said before that these two comapnies need to form some minimal alliances to share developmental costs and go after the imports mutually. Not a merger, not even a large sharing of technology or styling, but at least some joint ventures to develop transmissions, rear axles, crash systems, etc that they can amortize the developmental cost over more vehicles, thereby making themselves more profitable per unit. No one single platoon won WW-II alone, it took all of them working together, and I feel that the same will be critical for the American car company too.
What scares me right now is how dependent GM and Ford are on SUV and truck sales. They are sort of putting all their eggs in one basket, and now that basket is about to have the floor fall out of it due to fuel costs. Trucks/SUVs have been a safe-haven for GM and Ford in the last 10-15 years - a place where imports could not compete. Well, it still is kind of, but now the market is moving away from that segment, going back to cars (economical ones at that) where the importers have been a mainstay because GM and Ford literally conceeded this segment to the importers when they went truck-crazy in the last decade.
Here's an interesting article on futures for GM and Ford...
GM and Ford SUV Woes Concern Analysts
"Merrill Lynch analyst John Casesa echoed similar concerns. The domestic automakers, he wrote, "have the most to lose from this trend, as SUV sales represent a much larger proportion of their sales." He added, "We are growing increasingly concerned about the prospects of GM's new line of SUVs, which will be launched in January 2006."
"If the credit rating agency downgrades GM and Ford further into speculative status, it would signal that the automakers' business outlook and ability to pay off debts are growing riskier. As of June 30, GM had $284 billion in debt, and Ford had $158 billion, S&P said."
$158b and $284b is a LOT of debt guys.
I've said before that these two comapnies need to form some minimal alliances to share developmental costs and go after the imports mutually. Not a merger, not even a large sharing of technology or styling, but at least some joint ventures to develop transmissions, rear axles, crash systems, etc that they can amortize the developmental cost over more vehicles, thereby making themselves more profitable per unit. No one single platoon won WW-II alone, it took all of them working together, and I feel that the same will be critical for the American car company too.
What scares me right now is how dependent GM and Ford are on SUV and truck sales. They are sort of putting all their eggs in one basket, and now that basket is about to have the floor fall out of it due to fuel costs. Trucks/SUVs have been a safe-haven for GM and Ford in the last 10-15 years - a place where imports could not compete. Well, it still is kind of, but now the market is moving away from that segment, going back to cars (economical ones at that) where the importers have been a mainstay because GM and Ford literally conceeded this segment to the importers when they went truck-crazy in the last decade.
Here's an interesting article on futures for GM and Ford...
GM and Ford SUV Woes Concern Analysts
"Merrill Lynch analyst John Casesa echoed similar concerns. The domestic automakers, he wrote, "have the most to lose from this trend, as SUV sales represent a much larger proportion of their sales." He added, "We are growing increasingly concerned about the prospects of GM's new line of SUVs, which will be launched in January 2006."
"If the credit rating agency downgrades GM and Ford further into speculative status, it would signal that the automakers' business outlook and ability to pay off debts are growing riskier. As of June 30, GM had $284 billion in debt, and Ford had $158 billion, S&P said."
$158b and $284b is a LOT of debt guys.
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Posts: 10,285
From: Albany, NY
Re: GM's September sales down 24 percent
Originally Posted by guionM
Rest of the country was in the 80 cent range. SF was just under a dollar. Just before I moved down to San Diego the last time back in May 2000.
Kris93/95Z28, GM has certainly turned their quality around. I think a 6 year warranty will not only increase intrest in GM's cars, I think it would also eliminate the need for the latest profit-erasing, K-Mart-like sales promotion in order to sell cars.
Kris93/95Z28, GM has certainly turned their quality around. I think a 6 year warranty will not only increase intrest in GM's cars, I think it would also eliminate the need for the latest profit-erasing, K-Mart-like sales promotion in order to sell cars.
I agree about the warranties, it helped hyundia big time. The warranty sells 80%+ of those cars.
Also you mentioned changing market conditions, where is GMs high 30's-40mpg Aveo and Cobalt? 35mpg Malibus, 34mpg G6 and 31mpg Impala are nice, but GM needs to be in that upper 30's segment too. They have the smaller Ecotecs avalible and have a new ultra efficent 1.8L that still puts out 140HP. Why isn't that in the Cobalt for 2006 or 2006.5? Why does the lighter smaller engine Aveo only get 35mpg hwy?
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Posts: 10,285
From: Albany, NY
Re: GM's September sales down 24 percent
Originally Posted by 3SuperSports
That one kind of puzzles me too. That thing should be getting in the low 40's hwy. easy.
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Joined: Mar 2001
Posts: 4,000
From: TX Med Ctr
Re: GM's September sales down 24 percent
Originally Posted by Z28x
Actually the Avg. gas price back in 1981 was $2.37 for the year in 2004 Dollars, so right now we are paying the highest fuel prices since the early 1900's. Economies of scale should make gasoline cheaper than ever now.
