GM sales for November 2007
GM today released details about November sales. Compared to last year’s November sales are down with 11%. Even though GM is ahead of the other
domestic manufacturer, volume is going down and it’s gonna be hard to make profit this year.
Before the press release, here are couple quick facts:
- sales to daily rental fleets, down more than 14,000 vehicles, or almost 29 percent compared with a year ago. GM is trying to fight against the very high depreciation of their cars because of the massive volume of cars coming back from the rental fleets.
- In November 2007, GM North America produced 366,000 vehicles (134,000 cars and 232,000 trucks). This is just a quick reminder about how important are truck sales for GM. That 57% of sales for trucks.
- Mark LaNeve, GM North America vice president said they GM ...
"added production capacity at our Orion Assembly plant for Malibu to keep up with growing demand and dealer orders. Which is a good thing considering the extremely low availability of their flagship model.
- Only 7,210 Malibu were sold in November 07, which is -12.5% compared to last year. It seems that the slow start is due to lack of inventory but then why did GM start this massive advertising campaign if the car is not in stock.
- Quick word about the Buick enclave who apparently sale like hot cakes. 24,560 unit sold this year, nevertheless, buick is still down 23% on truck sales compared to 2006.
GM’s press release:
After three consecutive monthly increases, GM dealers in the United States delivered 263,654 vehicles in November, down 11 percent compared with a year ago, reflecting continuing reductions in daily rental sales and softening industry demand.
GM’s retail car deliveries increased, based on the strength of the all-new Chevrolet Malibu, 2008 Cadillac CTS and fuel-efficient Chevrolet Aveo, Cobalt, Pontiac G5 and G6.
"Integral to our strategy is to grow our share in the key car segments. The retail performance, especially from the new Chevrolet Malibu and Cadillac CTS, demonstrates the enthusiasm customers have for these outstanding new vehicles," said Mark LaNeve, GM North America vice president, Vehicle Sales, Service and Marketing. "The recognition of the 2008 CTS as Motor Trend’s Car of the Year reinforces what we are hearing from customers about this phenomenal car. And, not to be outdone, the new Malibu is flying off dealer lots."
There were several bright spots in retail deliveries, led by brisk sales in the economy, small, mid and luxury car segments and mid-utility crossovers. Chevrolet retail car sales were up more than 15 percent, Cadillac retail car sales, driven by a 48-percent increase in CTS sales, were up more than 13 percent and Pontiac retail car sales were up more than 8 percent. Total retail deliveries were down 9.7 percent, largely due to reduced availability of 2007 models after a strong sell-down in September and October.
"The Malibu, CTS and Enclave have some of the fastest turn rates in the industry," LaNeve added. "We’ve added production capacity at our Orion Assembly plant for Malibu to keep up with growing demand and dealer orders."
Together, GM’s mid-utility crossovers (Buick Enclave, Saturn OUTLOOK and GMC Acadia) sold nearly 13,000 vehicles at retail. Saturn retail truck sales, driven by the OUTLOOK, were up more than 35 percent. Chevrolet HHR retail sales were up 60 percent.
The Pontiac and GMC divisions showed retail sales increases.
GM continued to reduce sales to daily rental fleets, down more than 14,000 vehicles, or almost 29 percent compared with a year ago. Total fleet sales were down 16 percent.
Retail sales for the month, as a percentage of total sales, showed an increase of more than one percentage point (to 74 percent of total sales) compared with a year ago.
Vehicle inventories were down 97,000 vehicles compared with year-ago levels and stood at about 993,000 vehicles at the end of the month.
Quality, reliability and durability (QRD) remain key factors for customers when purchasing a new vehicle. "GM provides the best coverage in the industry. We take care of the vehicle and the owner like no other manufacturer," LaNeve added. An increasing number of consumers cite GM’s willingness to stand behind its quality as a reason to buy a new GM vehicle. GM’s new 5 Year/100,000 Mile Powertrain Limited Warranty continues to make GM a better choice for customers. GM’s coverage focuses on the complete ownership experience and includes other provisions that competitors do not offer, including transferability to the next owner, more complete coverage of parts, and coverage for new and certified used vehicles. In addition, GM offers superior complementary programs, such as courtesy transportation and roadside assistance.
Certified Used Vehicle Sales
November 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 37,946 vehicles, down nearly 11 percent from last November. Total year-to-date certified GM sales are 479,946 vehicles, up 0.3 percent from the same period last year.
GM Certified Used Vehicles, the industry’s top-selling manufacturer-certified used brand, posted 32,748 sales, down 10 percent from last November. Year-to-date sales for GM Certified Used Vehicles are 421,190 vehicles, up 2 percent from the same period in 2006.
Cadillac Certified Pre-Owned Vehicles posted November sales of 3,227 vehicles, down 9 percent from last November. Saturn Certified Pre-Owned Vehicles sold 1,372 vehicles in November, up nearly 2 percent. Saab Certified Pre-Owned Vehicles sold 468 vehicles, down 54 percent, and HUMMER Certified Pre-Owned Vehicles sold 131 vehicles, up 17 percent.
"While November was a challenging sales month for certified GM brands, year-to-date GM Certified Used Vehicle sales are up 2 percent through November and we’re in a position to set a new industry annual sales record for the manufacturer-certified category," said LaNeve.
GM North America Reports November 2007 Production, 2007 Fourth-Quarter Production Forecast Revised at 1.025 Million Vehicles, 2008 First-Quarter Production Forecast Set at 950,000 Vehicles
In November, GM North America produced 366,000 vehicles (134,000 cars and 232,000 trucks). This is up 5,000 units or 1 percent compared to November 2006 when the region produced 361,000 vehicles (148,000 cars and 213,000 trucks). (Production totals include joint venture production of 22,000 vehicles in November 2007 and 20,000 vehicles in November 2006.)
The region’s 2007 fourth-quarter production forecast is revised at 1.025 million vehicles (350,000 cars and 675,000 trucks), up 25,000 units or 3 percent from last month’s guidance. Additionally, the region’s initial 2008 first-quarter production forecast is set at 950,000 vehicles (344,000 cars and 606,000 trucks), down 113,000 vehicles or 11 percent from first-quarter 2007 actuals.