Jan. 2007 Sales: General Motors

[Variance]

Jan. 2007 Sales: General Motors

DETROIT - GM accelerated its efforts to reduce daily rental sales with a dramatic cut versus January 2006, contributing to United States total deliveries of 247,464 vehicles, down 19.7 percent on a sales day adjusted basis, from sales of 296,003 in January 2006.

"We are aggressively reducing our daily rental fleet sales as a continuing element of our strategy to offer industry-leading value and improve residuals. Importantly, we also are launching significant new vehicles such as everybody's truck of the year, the Chevrolet Silverado, and GMC Sierra full-size pickups, as well as the new GMC Acadia and Saturn Outlook mid-utility crossovers," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. "In January, our mix of total fleet to retail sales continued to improve significantly. The positive movement we have seen in total mix, and the mix of fleet to retail sales, positions us for future retail sales growth."

Total full-size pickup retail sales were up 7 percent compared with January 2006, with positive showings by Chevrolet Avalanche up 77 percent and GMC Sierra up 13 percent. Chevrolet Silverado retail sales volume was up more than 1,000 trucks compared with last January.

The new GMC Acadia and Saturn Outlook together accounted for more than 2,300 retail vehicle sales in the month. Combined with a 25 percent increase in retail sales for Buick Rendezvous, the mid-utility segment grew retail sales 132 percent compared with year-ago January levels.

Large luxury utilities continued to perform well, with a 40 percent retail increase by Cadillac Escalade, a 116 percent retail increase by the Escalade ESV and a 44 percent retail increase by Escalade EXT, compared with January 2006. "The continued strong performance of our segment-leading Escalade luxury utilities demonstrates our ability to design and deliver outstanding large luxury SUVs, with the best value, to the marketplace," LaNeve added.

Driven by a 5 percent increase in Chevrolet Aveo retail sales, GM's economy car segment retail volume was up 5 percent compared with January 2006. A 6 percent retail increase in Buick Lucerne and a 30 percent increase in Chevrolet Impala retail sales, compared with the same month a year ago, pushed GM's mid-car segment retail volume up 3 percent.

Certified Used Vehicles

January 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 43,262 units, up nearly 10 percent from last January.

GM Certified Used Vehicles, the industry's top-selling certified brand, posted January sales of 37,550 units, up 9 percent from year-ago levels.

Cadillac Certified Pre-Owned Vehicles posted strong January sales of 3,732 units, up nearly 27 percent. Saturn Certified Pre-Owned Vehicles sold 1,326 units in January, down 17.5 percent. Saab Certified Pre-Owned Vehicles sold 527 units, up 22 percent, and HUMMER Certified Pre-Owned Vehicles sold 127 units.

"GM Certified Used Vehicles started the new year off strong, increasing sales 9 percent over last January," LaNeve said. "This builds nicely upon 2006, when GM Certified Used Vehicles closed the year as the industry's top-selling manufacturer-certified brand for the fifth consecutive year. We're very pleased with this start and are confident 2007 will be a year for continued growth."

GM North America Reports January 2007 Production, 2007 First-Quarter Production Forecast is Revised at 1.080 Million Vehicles

In January, GM North America produced 313,000 vehicles (135,000 cars and 178,000 trucks). This is down 74,000 vehicles or 19 percent compared to January 2006 when the region produced 387,000 vehicles (159,000 cars and 228,000 trucks). (Production totals include joint venture production of 15,000 vehicles in January 2007 and 26,000 vehicles in January 2006.)

The region's 2007 first-quarter production forecast is revised at 1.080 million vehicles (417,000 cars and 663,000 trucks), down 40,000 vehicles or 3.6 percent from last month's guidance. The production decrease is due to GM's ongoing efforts to reduce low-margin daily rental fleet sales, shifting production to the company's new full-size pickups and the ongoing management of inventories. In the first-quarter of 2006, the region produced 1.255 million vehicles (496,000 cars and 759,000 trucks).

GM also announced 2006 actual fourth-quarter production and 2007 revised first-quarter production forecasts for its international regions.

GM Europe - In the fourth-quarter of 2006, GM Europe built 443,000 vehicles. In the fourth-quarter of 2005, the region built 443,000 vehicles. The region's 2007 first-quarter production forecast is unchanged at 508,000 units. In the first-quarter of 2006 the region built 494,000 vehicles.

GM Asia Pacific - GM Asia Pacific built 509,000 vehicles in the fourth-quarter of 2006. In the fourth-quarter of 2005, the region built 420,000 vehicles. The region's 2007 first-quarter production forecast is revised at 521,000 units, down 10,000 units from last month's guidance. In the first-quarter of 2006 the region built 472,000 vehicles.

GM Latin America, Africa and the Middle East - In the fourth-quarter of 2006, the region built 215,000 vehicles. In the fourth-quarter of 2005, the region built 188,000 vehicles. The region's 2007 first-quarter production forecast is revised at 225,000 units, up 11,000 vehicles from last month's guidance. In the first-quarter of 2006, the region built 194,000 vehicles.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. Founded in 1908, GM today employs about 284,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Note: GM sales and production results are available on GM Media OnLine at http://media.gm.com by clicking on News, then Sales/Production. In this press release and related comments by General Motors management, we use words like "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions to identify forward-looking statements, representing our current judgment about possible future events. We believe these judgments are reasonable, but actual results may differ materially due to a variety of important factors. Among other items, such factors might include: the pace of introductions and market acceptance of new products; the effect of competition on our markets and significant changes in the competitive environment; price increases or shortages of fuel; and changes in laws, regulations or tax rates. GM's most recent annual report on Form 10-K and quarterly report on Form 10-Q provide information about these factors, which may be revised or supplemented in future reports to the SEC on Form 10-Q or 8-K.

See link for chart: http://media.gm.com/servlet/GatewayServlet...amp;docid=33014

[source: General Motors]

[hdmax]

It sure is starting off on a bad note for GM. Just 72,000 more then toyota now. toyota goes up every freakin month, while GM is all over the place. They have a good month then half a dozen bad ones.

[CSpec]

The entire car line took a dump...

[Chicagoland]

Fewer cheap rental car sales. But, GM and Ford have to get the word out that they don't just make "gas guzzlers" as the media says.

Reports always say "Honda and Toyota gained sales due to thier fuel efficient products". As if all they make are 40MPG cars

[Croc]

SRX up 6.2%

[enzl]

Unfortunately, its going to be a long year for the 2.5...

...I just caught a glimpse of our regional GM sales. There are some retailers out there that are screwed. 25-60% of targeted numbers are the norm! (We, of course, were #1 in the region, by about 50 units and one of two stores to hit targeted numbers - out of approximately 35 stores.)

Scary.

[Northstar]

Jeeze, this is really bad. I hope that it's mostly because of fleet sales dropping and not because of retail sales. GM always seems to get off to a bad start.

The Aura is on target for 50k/year, not 100k/year. When the hell is it going to start taking off?

At least it would appear that trucks did OK. The next two months will be a good indication of how well the Lambdas are selling, I think. Having only seen two Acadias and a handful of Outlooks at dealers I can't say that January's numbers mean much.

Overall, a terrible month. The only good we can hope for is that the losses were due to a big reduction in fleet sales.

[4gm]

It is scary. Until I saw them, I had high hopes the new Malibu and CTS would knock my socks off and show GM was serious about making "gotta-have" cars. Unfortunately, I'm less than impressed with those 2 cars. I see GM's retail share continuing to decline for the forseeable future. They'll cut costs and be more profitable but they'll have less market share.

[Croc]

The AURA will take off once it gets a class-competitive interior and not just a class-adequate one. Seriously, everything else about it is spot-on.

[Flybrian]

The interior does not retard sales by that much. Lack of awareness does. I've seen one Aura-specific commercial that's just of some dizzy broad driving around the countryside proudly proclaiming something about 'that's why I like my Saturn' or some other equally vacuous drivel. Nevermind that it was an Aura XE! $h!ty ad. Period.

That, and its a Saturn.

[I hope GMRULES again]

Those numbers are brutal. Buick division only sold 12K vehicles for in the entire month, can you believe that? Pontiac down 38%. Even Solstice was down 60% and they were not lower fleet sales. Lacrosse and GP's won't find homes if they're not going to Avis. I think GM has found their Mojo about 10 years too late it looks America has moved on. Time to pull out the red tags.

[turbo200]

The interior does not retard sales by that much. Lack of awareness does. I've seen one Aura-specific commercial that's just of some dizzy broad driving around the countryside proudly proclaiming something about 'that's why I like my Saturn' or some other equally vacuous drivel. Nevermind that it was an Aura XE! $h!ty ad. Period.

That, and its a Saturn.

with about 500 dealers nationwide, a core base of customers have been propping up Saturn in the past--Ion and Vue buyers, along with fleet sales of both. Those that were looking for cheap transportation with a good record and friendly service-- a $14k car with smiles, no pressure, and a good track record---in essence a total chick car for the girl who is too afraid to try on that new shade of lip gloss everyone raves about [not every Saturn buyer, but you get my point]. Saturn is not a brand people looked at seriously--it was almost like a boutique car, for different people; buyers of it knew they made a reliable product, but most in the marketplace ignored it.

Now all of a sudden they have serious mainstream cars. This is a dramatic shift. The look alone is drastic, they went from being space pod-ish to total sleek packages. In order to be viewed as a full-line brand, they're gonna need time, patience, money, and support from the dealers, along with the key good product that catches attention. I drove by the biggest Saturn dealer in the SF Valley yesterday and they had one Outlook surrounded by 4 Auras. This is the new face of Saturn, and quite simply, no one was expecting that. I think the Astra 3-door will bring in a lot of window shoppers, as well the Sky is probably already doing. Aura and Outlook simply need more exposure and time. They are the practical buys---shopped amongst numerous competitors, researched to death, and validated by tough standards. The Sky is the impulse buy.

I think what would help tremendously, well what will help tremendously is the Astra, a great looking economy car, that also doubles as a sports car in 3 door hatch mode. I would love it if GM put a mandate on just producing the 3 door hatch Astra with the GTC wheels first for America---it's going to be limited production anyways so why not bring the best one over first---catch the attention of people with that car, and Saturn will continue riding the wave they are only beginning to see.

EDIT: Though I do agree the interior needs to improve, that's not the reason for the poor sales. Poor interior and all, the Aura is most certainly not an also ran in its category.

Edited February 2, 2007 by turbo200

[turbo200]

SRX up 6.2%

are you raving about 149 extra units? you know that's normal market fluctuations, right? Is this supposed to be like mud in my face, or evidence to prove you right? 149 extra units?

[BuddyP]

The AURA will take off once it gets a class-competitive interior and not just a class-adequate one. Seriously, everything else about it is spot-on.

I thought the Aura had a pretty nice and upscale interior... what am I missing here???

[turbo200]

I thought the Aura had a pretty nice and upscale interior... what am I missing here???

the overall look could be described as upscale, but its marred by details that look inexpensive. the quality is, to paraphrase Simon Cowell, rubbish. that armrest everybody goes on and on about, well let's just say there is a reason for that.

[Croc]

are you raving about 149 extra units? you know that's normal market fluctuations, right? Is this supposed to be like mud in my face, or evidence to prove you right? 149 extra units?

Huh? Prove me right about what? I have no clue what you're even referring to...???

SRX sales were up 6.2% It's a simple fact, and I'm only interested in it to the extent that January is the first month I know many dealers have been able to sell the refreshed 2007s. Many dealerships were (and still are) stuck with a glut of 2006 models and as a result 2007 ramp-up has been slow as GM has tried to sell old inventory.

Considering the SRX is generally regarded as best-in-class, I'm curious as to how the market responds now that it's fixed its biggest weakness, the cheapo interior.

[FUTURE_OF_GM]

I admit, I was optimistic. But now the same old pessimism is setting in.

But the difference now is that the GM products have been getting favorable press unlike in the past.

I know it's going to take time (Which is doubled because GM isn't an asian company--you know, they can do no wrong in america's eyes)

GM can kiss their title goodbye if this is any indication of 'NON FLEET influenced mix'

I think what GM needs to do is HIRE SOME DECENT PROMOTERS AND MARKETING PEOPLE and then just give it time... It's going to take time and dedication, especially for brands like Saturn, Buick and Pontiac. The buyers aren't going to come in overnight.

The Outlook is just getting started, there is a HUGE hole in the line up that the Astra needs to occupy immediately and the Aura has been victim of HORRIBLE marketing and advertisement. (No surprise there, it is GM afterall... 1 step forward, 2 steps back)

Not to mention, this year was already forcasted to be flat and January never sets the charts ablaze.

PS: Wasn't the Solstice introduced at this time last year? That might explain it's slide... A few other things of interest: The 9-5 redvamp at least gave the car a little bit of life, sales are low but up 64% then you take a look at 9-7X sales and see another pleasant surprise, that it is up 19%. It's also interesting that the Canyon is up 35%

[Mr.Krinkle]

so toyota will become number one because of fleet sales? typical.

[The O.C.]

The AURA will take off once it gets a class-competitive interior and not just a class-adequate one. Seriously, everything else about it is spot-on.

I agree.....

That's why I'm excited about Malibu.....the interior looks like it will be better from a fit-and-finish standpoint......and I think as attractive as the AURA is, the Malibu is even nicer.

[scharmer05]

Those numbers are brutal. Buick division only sold 12K vehicles for in the entire month, can you believe that? Pontiac down 38%. Even Solstice was down 60% and they were not lower fleet sales. Lacrosse and GP's won't find homes if they're not going to Avis. I think GM has found their Mojo about 10 years too late it looks America has moved on. Time to pull out the red tags.

Wasn't it this time last year when the Solstice was really getting out to the dealers. That would make sense then. Plus, in the snow belt, there aren't too many people in the market for a 2 seat convertibles.

[Chicagoland]

Solstice is a low volume niche car, and it is winter, remember. Also, don't expect cars based on over 10 year old platforms [GP/LaX] to 'fly off lots'. If the Aura was sitting around, then one could panic, but so far sales reports have been positive.

[gmcbob]

I was surprised to see the Impala and Lucerne retail sales are up.

Here in Houston, I hardly see any Lucernes - I mean, basically none. (Impalas I see a lot of though). I actually had a coworker ask me about 3 or 4 months ago: "do they still even make Buicks anymore?". (she's in her early 50s, drives an Expedition). I was almost in complete shock. Then, my sister, who lives in Atlanta, asked me the same exact question about 2 weeks later! Unreal. I was especially shocked that my sister asked me that, because our Dad worked as a Zone Mgr. for Buick in Buffalo back in the 70s and 80s.

GM needs to start marketing their products better. It's pretty sad when people don't even realize that still make Buicks. (That should give you an idea of simply how few they sell outside of the Midwest).

[VenSeattle]

I was surprised to see the Impala and Lucerne retail sales are up.

Here in Houston, I hardly see any Lucernes - I mean, basically none. (Impalas I see a lot of though). I actually had a coworker ask me about 3 or 4 months ago: "do they still even make Buicks anymore?". (she's in her early 50s, drives an Expedition). I was almost in complete shock. Then, my sister, who lives in Atlanta, asked me the same exact question about 2 weeks later! Unreal. I was especially shocked that my sister asked me that, because our Dad worked as a Zone Mgr. for Buick in Buffalo back in the 70s and 80s.

GM needs to start marketing their products better. It's pretty sad when people don't even realize that still make Buicks. (That should give you an idea of simply how few they sell outside of the Midwest).

Heh... I see Buick Lucernes regularly in Seattle. Not rentals either. Buick sponsers Tiger Woods... and is mentioned just about every time Tiger's name is mentioned in the News or Media. Promos on the Enclave have been extensive.

[gm4life]

The entire car line took a dump...

Well as long as everyone dropped who cares? Did sales at Toyota drop?

[gmcbob]

I will admit, I actually did see a new Lucerne in the parking garage at The Galleria the other day. It was the V8 (4 portholes). I actually really like the car, I think it would sell even better if it was advertised more. Honestly, I'd consider trading in my old 98 Jimmy on it if it had the 3.6 L engine and the 6 spd. tranny, but it doesn't.

I do see a LOT of the new Impalas though. I saw a black SS a few weeks ago, that thing is actually pretty sweet for the price. When I get ready to buy, I'm going to probably look at the new CTS. I may just go totally not practical though and just get a Camaro.

[trinacriabob]

It is scary in a way. I can't believe THAT many cars were "fleet sales."

Buick's traditional core market is growing in numbers, so the fact that Buick sales are as far down as they are surprises me...so what are elderly people of means buying? LaX is certainly an improvement over Century/Regal. The Lucerne is also more uptown than the duo it replaces. (However, having sat in a Lucerne leads me to believe that the bulky proportions to the rear in its thick high trunk and C-pillar, as well as some blind spots, may not be liked by the elderly buyer, despite its rakish styling). Pontiac's line-up is readjusting itself toward better clarity. Let's see what happens. In Chevyland, the Impala is doing well...and why not? It's a great value and nicer looking/better finished than its pre-update version.

I think it will get better....not by leaps and bounds, but certainly upward.

[bcs296]

Aura sales will take off when GM learns how to market it's vehicles, especially ones that are as good as the Aura.

I would love to see a commercial that says something like, "The Saturn Aura, declared a better overall package than the Toyota Camry by Autoweek, is comparably equipped for nearly $2,000 less."

Edited February 3, 2007 by bcs296

[ehaase]

Buick's traditional core market is growing in numbers, so the fact that Buick sales are as far down as they are surprises me...so what are elderly people of means buying?

Toyotas, Hondas, BMW's, Lexus - just like everyone else. Americans of all ages have unfortunately tuned out Ford and GM for good.

[gmcbob]

Toyotas, Hondas, BMW's, Lexus - just like everyone else. Americans of all ages have unfortunately tuned out Ford and GM for good.

I think you're somewhat right. I see a lot of "gray haired" people driving Asian nameplate cars these days, which actually is sort of surprising to me.

As far as Buick getting younger people back into their showrooms, every now and then, I'll see a LaCrosse (not very many around here) with a younger guy in his 30s driving it, but I can't help but think that it's either a rental or a company car. Pretty sad, considering that back in the 60s and 70s, a Buick was actually a pretty "hip" car to own.

[gmcbob]

To add to what I was saying, I can't think of a single friend my age (I'm 32) that would even consider a Buick, or could even name a current Buick model. (other than me of course, because I know a ridiculous amount of information about all makes and models of cars, for some crazy reason).

[turbo200]

To add to what I was saying, I can't think of a single friend my age (I'm 32) that would even consider a Buick, or could even name a current Buick model. (other than me of course, because I know a ridiculous amount of information about all makes and models of cars, for some crazy reason).

I have to agree completely with this. You can't get by with making cars nobody in the market cares about, and expect to have some kind of good legacy. This is a hole that GM has dug itself in. And unfortunately, as time has gone by, people keep forgetting more and caring less. So, GM has had windows of opportunity, a flexible Kappa platform comes to mind, and wasted them. Unremarkable styling and an antiquated image are the culprits here--and how do you turn around a bad image, good cars, lots of 'em, that make you stop and stare, and be consistent damnit. I believe, even now, Cadillac is barely being served the ingredients it needs to fully prosper, if this was Nissan, most of the whole lineup would have been fleshed out by now. Yes, CTS will keep it alive, but Cadillac is a profit diamond, they should have fleshed out the lineup by now with great looking coupes, convertibles, a sporty and attractive new crossover, and better looking sedans, aside from CTS.

[gmcbob]

I have to agree completely with this. You can't get by with making cars nobody in the market cares about, and expect to have some kind of good legacy. This is a hole that GM has dug itself in. And unfortunately, as time has gone by, people keep forgetting more and caring less. So, GM has had windows of opportunity, a flexible Kappa platform comes to mind, and wasted them. Unremarkable styling and an antiquated image are the culprits here--and how do you turn around a bad image, good cars, lots of 'em, that make you stop and stare, and be consistent damnit. I believe, even now, Cadillac is barely being served the ingredients it needs to fully prosper, if this was Nissan, most of the whole lineup would have been fleshed out by now. Yes, CTS will keep it alive, but Cadillac is a profit diamond, they should have fleshed out the lineup by now with great looking coupes, convertibles, a sporty and attractive new crossover, and better looking sedans, aside from CTS.

It's funny that you say that - I've thought about that too - what would another owner, or more proactive management, have done by now with the Cadillac brand as far as taking their "art & science" theme a bit further? Well, I honestly think the 08 CTS is going to be really sweet, but I think they should have made this update in 2005 or 2006. The G35 Sedan and the Lexus IS have both been updated already, and as much as I hate to say it, they're both on my list of cars that I would actually consider buying. The STS is a fine car, but I've always thought it was a couple of steps short of being a truly competitive car to the 5 Series or the GS for the simple fact that GM overlooked some key styling and execution in the interior. I think had they gone the extra mile, and put an 08 CTS-esque interior in the current STS, it would a lot more competitive with the BMW and perhaps even stealing sales away from Lexus and Infiniti (it could be right now, I don't know, as far as "stealing" sales away).

Honestly, I have a real soft spot in my heart for the Buick brand. My Dad worked there for a long time as a zone manager, and he brought home a different company car every other night when I was a kid. Park Avenues, LeSabres, Regals, and an occasional Riviera. They were all super sweet rides. I have a photo of me when I was 3 years old standing in front of a silver Century? Coupe with this crazy looking orange and black eagle painted on it. But anywho...I hate to say this , but I honestly think Buick is in so much "trouble" right now, that unless they do something very drastic with the product lineup (sorry, but the new Rainier isn't going to be enough I'm afraid), then the whole brand could just be abandoned completely in the next 5 or 6 years. That would be a tragedy for GM.

But hey, like I've said, I'm speaking as a guy who lives in a town where the Buick is just not a popular car. I just don't see them in droves like I do other cars. Maybe there is some hope for Buick, but they need some super key "gotta have its" quick, like RIGHT NOW!

[ehaase]

But anywho...I hate to say this , but I honestly think Buick is in so much "trouble" right now, that unless they do something very drastic with the product lineup (sorry, but the new Rainier isn't going to be enough I'm afraid), then the whole brand could just be abandoned completely in the next 5 or 6 years.

Buick is just a sub brand now to be sold in dealerships along with Pontiac and GMC. Buick's lineup will be limited to the Lucerne, Lacrosse, and Enclave, although are unsubstantiated rumors of a fourth model many years away. Buick is doing well in China, so it will survive in this country as well as a niche brand for the few remaining people (like me) who like traditional American cars.

[turbo200]

But hey, like I've said, I'm speaking as a guy who lives in a town where the Buick is just not a popular car. I just don't see them in droves like I do other cars. Maybe there is some hope for Buick, but they need some super key "gotta have its" quick, like RIGHT NOW!

Where I live, the only presence Buick has is with Lacrosse rentals. When I say presence, I mean being able to see these cars on a consistent basis. Pontiac's only consistent presence is the G6, again many are rentals; while Solstice and GTO are a close second, not a daily basis yet but weekly basis is about average, Vibe and Torrent follow them; GP is visible as a rental, trust me I check for the barcodes all the time. Caddy has a very consistent daily visibility with the CTS and Escalades are like shopping carts at the mall; STS is next with a pretty average visibility, compared to the 5-series and E-class, which, like the Escalade, seem to be as popular as underwear here; DTS is popular as a rental; SRX is very visible. Chevy has the Impala rentals on the car side, nothing else on the car side except MC rentals; on the truck side GM is huge. Thanks to the GMT900s GM dealerships in SoCal are still in business.

It speaks volumes when on the radio every ad you hear is for the biggest Honda dealer, all the Toyota dealers, MB lease specials, BMW certified used....etc etc. I hardly ever hear ads for GM dealers.

As for the first part of your post, that is exactly what I was talking about. GM hasn't been proactive enough with the success they stumbled upon with Escalade and CTS. They haven't built enough on what those cars meant, and why the public responded to those. They should have started reacting long ago with all the other car brands, instead they teased us with great concepts, while the other automakers caught on to the formula, and are now getting ready to remake thier brands/image or have already done so.

Edited February 3, 2007 by turbo200

[daves87rs]

As they kill more rental sales off, I expect to see more decline.

I also expect sales to get worse this year for two reasons:

1. Product-the killing of models are going to take some sales. Cutting back production on others-less cars/trucks to sell.

Models on their last legs ( TBs and Envoy, DTS, Lacrosse) are hurting too, as GM almost can't give them away.

2. The ecomony. Regardless of the reasons (or points brought up), it looks like it is going to take a dump again.

Between the war in Iraq and crazy gas prices, would you (the average person, mind you) run out to buy a new car?

Or truck?

Then there are those on the fence waiting to see what happens at Ford- heck, there could be a fire sale soon.

Great time to get a car-cheap.

As grim as I sound, I don't have it out for GM.

Expect sales of toyota,Honda, and others to slide too. Kia could have a sales increase though......

Boys and girls-we are in for some rough times....

[turbo200]

on a more positive note...I am starting to see Silverados blinged up. I think they look great, the few that I've seen have some tasteful but big mods, wheels, zenons, darkened tails.....they look great, and I know it will catch on. Last gen Avys and Silvys were favorites for that kind of treatment, and it seems like the new Silvy is poised for that treatment. I'm glad to see that the changes really do favor the Silverado's design, and the truck is definitely growing on me.

[GXT]

Anyone seen any hard numbers on the fleet/retail mix?

[daves87rs]

on a more positive note...I am starting to see Silverados blinged up. I think they look great, the few that I've seen have some tasteful but big mods, wheels, zenons, darkened tails.....they look great, and I know it will catch on. Last gen Avys and Silvys were favorites for that kind of treatment, and it seems like the new Silvy is poised for that treatment. I'm glad to see that the changes really do favor the Silverado's design, and the truck is definitely growing on me.

It's good you're seeing them-cause I'm not. And I live in the Motor City.

I've only seen 3 on the road so far.

Not a good sign.

[Matt276]

Easy to explain the sales drop, product not good enough!

[daves87rs]

Easy to explain the sales drop, product not good enough!

Could you say the same, for say, a Big Mac?

[Oracle of Delphi]

I think it's a good thing to try an reduce fleet sales, however I think a few things are going on. First the weather has been crap, people are not able to get out in some places in North America. Secondly, I think people are holding out until they see better rebates offered and trying to figure out where gas prices are going. Here gas prices have risen 10 cents in a week. If sales are crap again this month, I would expect to see rebates in full swing in March and April, and I would not be surprised to see Employee pricing return if Feb turns out to be a bad month saleswise.

[CARBIZ]

At a recent sales training meeting, GM brought out some big guns from Oshawa to preach to the choir about how great our product is. Most of us were Chevrolet dealers and every time we heard the Acadia name mentioned, we wanted to scream. Lots of time was spent on the ecotec engine and how it is the greatest engine since the 3.8. Talking about the tuner crowd. $25k (Canadian) for the new Sentra. Lots of hoopla. One of the guys finally spoke up and said,"Don't tell us, tell the customers!"

We, the guys/gals on the front lines KNOW we have the best product out there. We don't need convincing. During lunch break, we swapped horror story after horror story about having to deal with the HOnda/Toyota humper who won't listen to any reasoning. Even the bad press lately that is hitting Toyota is not making a dent.

Our store sold under 30 retail units last month. So I sent an information card to Oshawa, demanding to know why I, as a Chevrolet salesperson in Toronto, should not jump ship to Pontiac-Buick-GMC. Chevrolet is finished in the greater Toronto area, from where I sit. Yet another customer, who has leased 2 Malibus from me in the past 7 years, called me up the other day and she wants a convertible this time around. What's that, I asked, you don't want to pay $80k for a Corvette? Sorry, ma'am, that's the only convertible I have. Oh, what's that? You have already decided you want a G-6 convertible. Sure, I can send you to a Pontiac dealer to drive one and pray they don't try and sell it to you while you are over there. I am losing most of my Alero customers, enmasse. Some are going to Pontiac, but most are going to the imports. One woman who had an Alero GLS and is a buyer for CP rail in Canada was told by her superiors that she HAD to get a BMW or Audi this time around. I retorted that considering the business GM has done with HER company in the past, I found that rather outrageous that they are dictating what she can and cannot lease.

The Sierra outsells the Silverado in Canada, folks. In Toronto, we sell Uplanders, Malibus, Impalas, Equinoxes, Aveo, Cobalts, and Optras. That's pretty much it. We have 3 Colorados on the lot; I was at a dealer in Guelph that had 30 of them. GM is doing the right thing in bringing the Opel product to North America; however, Saturn getting it is going to kill Chevrolet in the Toronto area, IMO. An Aveo against the Corsa? Do you know how many HHRs sold in Canada last year? 6,500. Wasn't it over 100k in the U.S.? The Pontiac dealers in Canada whined and fussed, so they got the Wave, the Pursuit and Torrent. They always had the Aztek and Rendezvous, for better or worse.

I've seen the Malibu and it is great, but it won't be enough. With the G8 going to Pontiac first, then the RWD Impala, it will be yet another nail in the coffin for Chevrolet. Don't forget, folks, that Chevrolet is - in all reality, just another foreign name in our market. It doesn't have the "Heartbeat of America" panache that it does in the U.S.