GM June Retail Sales Up 10 Percent Compared With May; 176,571 Total Deliveries Were Down 33.6 Percent Compared With A Year Ago



Retail improvements reflect increasing consumer confidence in GM’s long-term viability: Compared with May, 20 percent jump in cars, 13 percent boost in crossover deliveries
June was the fourth consecutive month-over-month retail sales increase led by core brands: Chevrolet, GMC, Buick and Cadillac which were up 6 percent collectively compared with May
Camaro launch momentum builds with 9,300 total sales; demand outstrips supply with an additional 10,000 sold orders to be filled; vehicle ends the month with less than a 7-day supply DETROIT – General Motors dealers in the United States delivered 176,571total vehicles in June, down 33.6 percent compared with a year ago. However, when comparing GM’s June retail sales with May, volume was up 10 percent, or more than 13,000 cars, crossovers and trucks resulting in the fourth consecutive month-over-month retail sales increase.

“We’re pleased with our retail performance for the month, and it shows consumers’ strong attraction to our products – such as the Camaro, Aveo, Traverse, LaCrosse, Lucerne, CTS, DTS and STS – which all saw retail sales gains compared with May,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. “Customers are cautiously coming back into the market, although the industry remains very weak at approximately a 10 million SAAR (Seasonally Adjusted Annualized Rate). The reinvention of GM remains on track and we have compelling new offers in July, including 0 percent financing for up to 72 months available through GMAC and the Federal CARS (Car Allowance Rebate System) ‘Cash for Clunkers’ plan that encourages consumers to trade in their old car or truck for a new fuel-efficient GM product.”

Although GM retail sales were up in June, fleet sales of 32,725 vehicles were down 49 percent compared to a year ago, contributing to an overall sales decline of 89,366 vehicles versus June 2008. This drop in fleet sales was a direct result of a strategic decision GM made to schedule down weeks at a number of its plants to tightly control inventories and better enable GM dealers to reduce their stock of vehicles. GM total truck sales in June (including crossovers) of 93,458 were down 40 percent, and car sales of 83,113 were off 24 percent compared with a year ago.

When compared with May’s retail performance, there were several product highlights in GM’s core brands to note:

Chevrolet car retail sales were up 8 percent driven by Camaro and Aveo. Avalanche, Colorado, HHR, Equinox, Suburban and Traverse also saw retail sales increases with Chevrolet retail truck sales up 2 percent. Total Chevrolet vehicle retail sales increased 4 percent
Buick Enclave saw a retail sales increase, pushing its crossover sales up 5 percent. Buick retail car sales increased 17 percent with Lucerne up 21 percent and LaCrosse up 12 percent. Buick retail sales increased 11 percent
Cadillac car retail sales increased 16 percent with CTS, DTS and STS all pushing retail volume higher. Truck retail deliveries increased 3 percent as Escalade EXT and ESV both saw retail increases. Cadillac crossover retail sales increased 26 percent as SRX saw a retail sales increase too. Cadillac retail sales overall were up 14 percent
GMC crossover retail sales were up 2 percent, pushed by Acadia deliveries. Canyon retail sales were up 43 percent and Yukon XL retail sales increased 19 percent
“Our outstanding products continue to compete strongly in the market,” LaNeve said. “Camaro is the hottest product in America and probably led the sport segment with more than 9,300 vehicles delivered in June without any incentives. Additionally, we are offering the best selection of crossovers with Traverse, Acadia, Outlook and Enclave and we just announced very affordable pricing on the all-new GMC Terrain crossover. We invite consumers to visit dealer showrooms to shop and compare for themselves. We are confident they will be pleasantly surprised by the compelling designs, segment-leading fuel economy and outstanding value that our new cars, trucks and crossovers have to offer.”

A total of 1,454 GM hybrid vehicles were delivered in the month, illustrating the wide range of hybrid product offerings available. GM offers the Chevrolet Malibu, Tahoe and Silverado, GMC Yukon and Sierra, Cadillac Escalade, Saturn Aura and Vue hybrids. So far, in 2009, GM has delivered 8,349 hybrid vehicles.

GM’s four non-core brands saw total sales declines compared with a year ago as Saturn declined 60 percent; Saab was off 58 percent, HUMMER dropped 48 percent and Pontiac declined 16 percent.

GM inventories dropped compared with a year ago, and are on track to approach the half-million mark as planned. At the end of June, about 582,000 vehicles were in stock, down about 206,000 vehicles (or 26 percent) compared with last year, and are down approximately 33 percent compared with January. There were about 250,000 cars and 332,000 trucks (including crossovers) in inventory at the end of June. Inventories were reduced about 93,000 vehicles compared with May.

FORD CUSTOMERS DRIVE HIGHER SHARE, PRODUCTIONCustomers purchase Ford Fusion, Ford Flex and hybrids in record numbers
Ford, Lincoln and Mercury sales totaled 148,153, down 11 percent versus a year ago
June market share up 3 points versus year ago; second-quarter and first-half market share also higher
Higher-than-expected customer demand prompts Ford to announce production increase
Ford helps dealers and customers get ready for "Cash for Clunkers" program; "Let Ford Recycle Your Ride" at www.ford.com shows customers which vehicles qualify
Download Full Sales Release

DEARBORN, Mich., July 1, 2009 – Customer demand for new products helped Ford Motor Company increase market share in June, even as Ford continued to de-escalate incentive spending. Ford, Lincoln and Mercury sales totaled 148,153, down 11 percent versus a year ago, which is believed to be the month's lowest decline among major auto manufacturers.

"We're making steady progress and are firmly focused on our Plan to build a sustainable and exciting Ford," said Jim Farley, Ford group vice president, Marketing and Communications. "We remain grounded, however, given challenging industry and economic conditions."

Sales of the Ford Fusion were 18,561, a June sales record and up 26 percent versus a year ago. Ford Flex sales were 4,784, a record for any month since it hit dealerships in June 2008. Sales of the company's hybrid vehicles totaled 3,649, a June sales record and up 91 percent versus a year ago.

"Customers tell us they love our new products, and they're not holding back on their investments in higher series levels and top-shelf options," said Farley.

"Customers are showing us just how much they value the quality, fuel efficiency, safety and smart technology incorporated in our new product lineup," he added. "This is an exciting time for Ford, which has more new vehicles in the market this year than any other automaker."

Internal and external studies show a positive trend in the percentage of consumers with favorable opinions about Ford, and growing numbers of consumers who are willing to consider purchasing a Ford product thanks to improved fuel economy, smart technology and higher residual values.

Other Sales Highlights

Ford Mustang sales to retail customers nearly matched year-ago levels. The new 2010 Mustang, which debuted in May, achieved a 52 percent conquest rate in June – one of the highest for any Ford product.
Retail sales for the Ford Escape and Mercury Mariner small utility vehicles were equal to a year ago. The Escape and Mariner are available with hybrid engines making them the most fuel-efficient utility vehicles in America.
Retail sales for the Ford F-Series and Ranger pickup trucks were higher than a year ago. The new F-150 pickup offers customers best-in-class capability and unsurpassed fuel economy and the Ranger is the most fuel-efficient compact pickup in America.
Mercury Milan sales to retail customers also neared year ago levels. Like the Fusion, the new 2010 Milan has a hybrid version. The Fusion and Milan are the most fuel-efficient mid-size sedans in America.
Although Lincoln sales were lower than a year ago, Lincoln gained market share in the luxury segment in the first half 2009 versus a year ago. This primarily reflects the strength of the all-new Lincoln MKS sedan. A new Lincoln MKZ sedan debuted in March, and an all-new Lincoln MKT crossover will be introduced later this year.
Inventories and Production
At the end of June, Ford vehicle inventories totaled 343,000 (equivalent to 60 days' supply). This level was 8,000 vehicles lower than at the end of May and 214,000 vehicles lower than a year ago.

Given tightly controlled inventories and higher-than-expected demand for its products, Ford announced plans to increase third-quarter production by 25,000 vehicles to 485,000, up 67,000 vehicles (16 percent) versus a year ago.

"Cash for Clunkers"
The new federal "Cash for Clunkers" legislation that allows U.S. consumers to receive government-backed incentives for trading in older, less fuel-efficient vehicles is welcome news for Ford, Farley said.

"Our global experience with similar programs teaches us that reaching out to dealers and customers quickly and directly is the key to success," said Farley. "Our new web-based tool was operational last week. At www.ford.com, dealers and customers can 'Let Ford Recycle Your Ride' and find out whether their vehicle is eligible for a voucher as well as what new Ford vehicles qualify under the program."

"The timing of the program couldn't be better because we have the freshest lineup in the industry, and many Ford vehicles lead in fuel economy," he added. "There's even more to come in the second half of the year, with the arrivals of the all-new Ford Taurus, Ford Transit Connect, Lincoln MKT and the introduction of EcoBoost engine technology on the Taurus SHO, Ford Flex and Lincoln MKS and MKT.

Sales of the third leg of 2009's pony car table, the Dodge Challenger, trail far behind, with just 1,369 units cleared last month.