May 2008 Sales: General Motors Corp

[VenSeattle]

GM Reports 272,363 Deliveries in May
FOR RELEASE: 2008-06-03
Link to Press Release

(Monthly comparison percentages are sales day-adjusted unless noted.)

*Chevrolet Car Retail Sales Led By a 103 Percent Increase in Malibu, 22 Percent Increase in Aveo, and 1 Percent Rise in Cobalt Sales
*Pontiac Retail Car Sales Driven By a 36 Percent Increase in Vibe Sales
*Buick Enclave, GMC Acadia and Saturn Outlook Power Mid-Utility Crossover Segment with 12,000 Total Vehicles Sold
*Fleet Sales Off 36 Percent Due To Planned Reductions In Daily Rentals and The Impact Of The American Axle Strike

DETROIT - GM dealers in the United States delivered 272,363 vehicles in May. The sales increase in fuel efficient cars and crossover vehicles could not make up for soft truck demand and a decline in fleet deliveries impacted by the American Axle strike. Approximately 15-18,000 sales were lost in May, or will be retimed, due to various work stoppages including the American Axle strike. Compared with a strong May 2007, total sales were down 30 percent (28 percent unadjusted). Truck sales declined 39 percent.

Dealer inventories were at their lowest level since August 2005 with about 772,000 vehicles in stock, down about 219,000 vehicles compared with last May, and down more than 136,000 vehicles compared with December 2007.

"We are very pleased with our performance in many critical car and crossover products as consumer preferences continue to shift toward these vehicles. Our challenge in May was having enough vehicles available to sell. We would have posted even stronger sales of the Chevrolet Malibu, Impala, HHR, and Cobalt, Cadillac CTS, Pontiac Vibe and crossovers Buick Enclave, GMC Acadia and Saturn Outlook if product availability were better," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing.

"Obviously, most trucks segments were weak across the industry - and we were no exception. Today's production adjustment announcement at the annual GM shareholders meeting shows that we are intent on increasing car and crossover production and leveraging our competitive position for the economic recovery while acknowledging the impact of a challenging economic environment on truck sales," LaNeve added.

Chevrolet Malibu total sales were up 34 percent with retail sales up 103 percent, Aveo sales were up 39 percent total and 22 percent retail, and Cobalt sales were up 15 percent total and 1 percent retail and HHR was up 24 percent total and 33 percent retail. Pontiac Vibe total sales were up 65 percent and retail sales were up 36 percent compared with May 2007. Saturn Aura was up 5 percent retail, and the Astra saw increasing sales with nearly 1,100 vehicles sold. In the luxury car segment, the award-winning Cadillac CTS saw total sales increase 11 percent with an impressive retail increase of 18 percent compared with the same month a year ago.

GM's popular crossover Buick Enclave, GMC Acadia and Saturn Outlook together accounted for more than 12,000 vehicle sales in the month. There were 6,600 Acadia, 2,900 Enclave and 2,500 Outlook total sales.

"We see the mix shift as a tremendous opportunity for GM," LaNeve added. "We have a full lineup of vehicles - including five hybrid models -- that provide industry-leading value, great fuel economy and the best warranty coverage of any full-line automaker."

Certified Used Vehicles

May 2008 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 46,574 vehicles, up 1.5 percent from May 2007. Year-to-date sales are 214,686 vehicles, down nearly 6 percent from the same period last year.

GM Certified Used Vehicles, the industry's top-selling certified brand, posted May sales of 40,393 vehicles, a slight increase over a strong May 2007 sales performance. Cadillac Certified Pre-Owned Vehicles sold 3,707 vehicles, up 20 percent. Saturn Certified Pre-Owned Vehicles sold 1,432 vehicles, down 11 percent. Saab Certified Pre-Owned Vehicles sold 851 vehicles, up 7 percent, and HUMMER Certified Pre-Owned Vehicles sold 191 vehicles, up 127 percent.

"GM Certified Used Vehicles posted its strongest monthly sales performance this year, with sales up for the fifth consecutive month, while Cadillac, Saab and HUMMER Certified Pre-Owned Vehicles also posted solid gains," said LaNeve. "In a challenging economic environment, we're encouraged to see more consumers opting for the quality, value and peace-of-mind assurances that come with the purchase of a certified GM vehicle."

GM North America Reports May 2008 Production; 2008 Second-Quarter Production Forecast Revised to 835,000 Vehicles; Initial Third-Quarter Production Forecast Set at 1.055 Million Vehicles

In May, GM North America produced 248,000 vehicles (118,000 cars and 130,000 trucks). This is down 153,000 vehicles or 38 percent compared with May 2007 when the region produced 401,000 vehicles (139,000 cars and 262,000 trucks). (Production totals include joint venture production of 17,000 vehicles in May 2008 and 18,000 vehicles in May 2007.)

Approximately 100,000 units of production, including between 15-18,000 potential fleet sales, were lost in May due to the American Axle work stoppage. Since the dispute began last February, approximately 330,000 units of production were lost. Approximately 33,000 additional units of production were lost due to other local work stoppages. GMNA has revised its forecast for 2008 second-quarter production to 835,000 vehicles, down 115,000 units from the prior forecast to reflect May production losses caused primarily by the American Axle strike. As of June 3, all GM plants impacted by the strike have returned to production. Additionally, GM North America's initial 2008 third-quarter production forecast is set at 1.055 million vehicles (441,000 cars and 614,000 trucks), up 35,000 vehicles or 3 percent from third-quarter 2007 actuals. GM North America built 1.020 million vehicles (367,000 cars and 653,000 trucks) in the third-quarter of 2007.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 266,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. 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.

[Drew Dowdell]

Only 1 percent retail increase for Cobalt? Time for the Delta II was yesterday GM....

I am honestly surprised with how well the Lambdas are doing. I expected them to really hit the skids.

Good to see the Malibu and CTS still doing well.

[ZL-1]

I understand GM is getting away from daily rental fleets and that there was a stirke that is delaying production and revenue recognition (IIRC, accountig-wise sales are recorded when the vehicle is shipped to the dealer), but still... a 30% decrease? Ouch!

[A Horse With No Name]

Agreed, good to see the bu and the CTS doing so well...

Chris

[CARBIZ]

Yeah, the news ain't pretty. I think GM is down almost 3 points in market share this year to 21.7% in Canada. Toyota is up just over 1 point to nearly 12.8% in Canada. I think Ford and Chrysler responded more aggressively to the rise in the $C. I see a lot of print ads for Ford and Chrysler, mostly paid by dealers, which at least give the impression their prices have dropped. Then again, with Chrysler selling the new Grand Caravan for $20k around here - who the heck would want the Uplander RWB for $2k less?

GM hasn't started their 'summer sell down' yet, but I don't think there will be much fanfare this year. Most dealers are carrying half the inventory they normally do. As I have said before, at $5.50 a gallon, the world stops spinning on its axis. We can't keep Cobalts, Aveos and HHRs in stock. Suddenly everyone wants 4 cylinder Malibus. (Maybe GM was right about that one.)

Chrysler is actually up 5% for the year in Canada; whereas GM is down 7.7 for the year. Ford is kind of coasting.

There is a lot of dealer consolidation going on around here. Two more GM dealers 'merged' this past couple weeks. We keep hearing that the Canadian economy is going to escape the firestorm that will afflict south of the border, but with 1 in 8 Ontario jobs related to the auto industry, it won't be pretty around here.

[gm4life]

I am going to $h! myself. At least Toyota took a hit. Actually a pretty good one. Get those new little cars out and soon.

Edited June 4, 2008 by gm4life

[Intrepidation]

I am going to $h! myself. At least Toyota took a hit. Actually a pretty good one. Get those new little cars out and soon.

Yeah, but sadly not compared to the hit GM (and Chrysler and Ford) took.