Strong pickup sales suggest a GM revival

[Oracle of Delphi]

General Motors stunned the automotive world last week, but it wasn’t for the usual negative reasons.

Industry followers more accustomed to hearing about large layoffs or sickening sales declines were startled when GM said its U.S. sales rose 3.7 percent in February, even as its two domestic rivals, Ford and Chrysler, posted sizable declines and the overall market was flat.

GM’s gain in the normally soft month was led by strong demand for its sport utility vehicles and pickup trucks including the redesigned Chevrolet Silverado. Even more impressive, the gain came without the huge sales incentives of previous years.

Link: http://www.msnbc.msn.com/id/17467382/

[ocnblu]

A polite note to Toyota: shut your piehole!

[zeek]

A polite note to Toyota: shut your piehole!

[Dragon]

I think I'll wait a couple more months of sales increases before telling any competitions to shut any bodily oriface

[gm4life]

Sitting at this computer I am getting depressed despite this bright spot. Seriously I have all my energy drained and hate forigen cars...

[vrazzhledazzle]

I posted this already and at least three others topics are about GM sales gains.

Nevertheless, its great news and worth repearting. Of course, it would be 348-73673464368934 times better if the trend continues.

[turbo200]

we'll see. it's way too early to let the ballons and confetti out just yet. but they were encouraging signs. i'd like to see consistent increases.

[2005 EquinoxLS]

I am starting to see a lot of the new GM trucks around here. The new Tahoe seems to be a really strong seller. The Suburban too.

[daves87rs]

I've seem the cars..not so much of the trucks yet.

although I see plently of the new SUVs...

[ellives]

I think I'll wait a couple more months of sales increases before telling any competitions to shut any bodily oriface

All trends start somewhere... let's hope this is the start of a trend.

[Windy-57]

The most crucial part of this is that they made the gains on the retail side, without an increase in incentives; both incentives and fleet deliveries fell and total sales were up...that is huge. It's been a while since a member of the Big 3 made yr/yr sales gains without a heavy influence from incentives or fleet sales.

Also, I would bet on (or rather invest on) the fact that this will be a continuing trend. GM knows as well as anybody that the trucks and SUVs aren't going to gain market share, but rather provide the short-term revenue to fuel the remainder of the turnaround. Their most important gains are yet to come; the Acadia, Outlook and Enclave are just beginning to sell and are nowhere near their peak, the new Malibu is going to see share gains, Saturn is still changing peoples' perceptions and will continue to gain share, and by the time this stuff starts to lose steam, we're into Zeta time.

[Phalcon]

As long as gas prices stay below $3 a gallon things should be OK for further sales growth of GM's big rigs. There's something about $3 for a gallon of gas that causes people to abandon all sanity and dump their Escalade for a Honda Fit.

I'm not too optimistic about low gas prices, though, seeing as how I'm paying $2.56 a gallon now and it ain't even spring yet! What's behind the rise in fuel prices lately?

[sciguy_0504]

I'm not too optimistic about low gas prices, though, seeing as how I'm paying $2.56 a gallon now and it ain't even spring yet! What's behind the rise in fuel prices lately?

Apparently, refineries have to shut down in order to switch from winter blend fuel to summer blend, which has extra chemicals to help cut smog and pollution. This leads to a shortage of supply for the time being and the rest is classic supply and demand. I say it's just another way to increase the price. By the way, I discovered this in a recent newspaper article so I'm not pulling it out of somewhere.

As others have said, I'd like to see gains on a monthly basis across the sales spectrum (not just pickups, large SUVs) before throwing a party. It is a good start, though. I haven't seen many GMT900 trucks around my area but the SUVs are just about everywhere.

[Mr.Krinkle]

Apparently, refineries have to shut down in order to switch from winter blend fuel to summer blend, which has extra chemicals to help cut smog and pollution. This leads to a shortage of supply for the time being and the rest is classic supply and demand. I say it's just another way to increase the price. By the way, I discovered this in a recent newspaper article so I'm not pulling it out of somewhere.

As others have said, I'd like to see gains on a monthly basis across the sales spectrum (not just pickups, large SUVs) before throwing a party. It is a good start, though. I haven't seen many GMT900 trucks around my area but the SUVs are just about everywhere.

Pffft. Whered you read that? in a newspaper. You know who prints that stuff right?

Summer blends are in now and as long as gas settles at a certain point things should be o.k. for the truck end. Most people do not want another slap in the face from Katrina but will budget their gas in a certain acceptable amount.

The most crucial part of this is that they made the gains on the retail side, without an increase in incentives; both incentives and fleet deliveries fell and total sales were up...that is huge. It's been a while since a member of the Big 3 made yr/yr sales gains without a heavy influence from incentives or fleet sales.

The perception gap has been and continues to be the most difficult hurdle to overcome. I believe the domestics have many of the hearts of the public, maybe the minds... just not their wallets. This is being addressed by the current mgmt. at GM and will have to wait a little longer to see if the damage is irreversible. Judging by the stuff set to roll off the lines i say people are going to run out of excuses.

[regfootball]

pickups are one of those segments where if gas rises, sales fall but the demand remains the same over time. It just gets delayed or pent up until gas drops again. Gas dropped so people said, 'ok i can buy that truck now'.

its cyclical. in America, the demand for trucks is always there. You can't replace the function of a pickup.

Oh wait, unless you buy a ridgeline.

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!

not.

even then, a ridgeline, like all honda trucks and SUV's, get horsecrap mileage.

Edited March 7, 2007 by regfootball