General Motors December 2009

[Justin Bimmer]

Chevrolet, Buick, GMC and Cadillac Post Sales Gains

Retail Sales of Chevrolet, Buick, GMC and Cadillac Up 13 Percent

GM Retail Market Share Increased Two Share Points in Q4 vs. Q3

U.S. Dealer Inventory Reaches 385,000 – Lowest Year-End Level on Record

DETROIT – GM dealers in the U.S. reported 160,996 retail deliveries in December – a 7 percent increase compared to last year, and a 50 percent increase over last month. Retail sales of Chevrolet, Buick, GMC and Cadillac brands were 146,419 – up 13 percent for the month. In total, GM dealers in the U.S. delivered 208,511 vehicles in December. This represents a total sales decline of 6 percent from the previous year, driven primarily by declines in fleet sales (33 percent) and in sales of non-core brands (55 percent).

“The fact that our retail market share has increased two full points from the third to fourth quarters demonstrates that we are strengthening our brands,” said Susan Docherty, GM vice president, U.S. Sales. “We are delivering a healthier sales mix and earning consumer confidence through our launch vehicles such as Chevy Equinox and Camaro, Buick LaCrosse, GMC Terrain and Cadillac SRX.”

In 2009, GM dealers delivered 2,084,492 vehicles, down 30 percent compared with 2008. “The year-over-year comparison reflects a 38 percent reduction in fleet, reduced overall incentive spending and the orderly wind-down of the Pontiac and Saturn brands,” Docherty said. “Our sell-down of Pontiac and Saturn inventory is 10 months ahead of schedule and we only have about 1,700 vehicles left – 800 Pontiacs and 900 Saturns. This shows real progress in our action plans.”

Other December Key Facts:

• Retail sales of Chevrolet, Buick, GMC and Cadillac brands were 13 percent higher than in 2008 – achieved with 47 percent less inventory than last year

• Chevrolet retail sales were up 14 percent – driven by strong sales of Camaro (7,518 sales – segment leader for fifth straight month), Traverse (up 92 percent), Malibu (up 34 percent) and Equinox (up 137 percent)

• Buick retail sales were up 32 percent compared with a year ago on the continued strength of LaCrosse (up 370 percent) and Enclave (up 37 percent)

• GMC retail sales were up 4 percent vs. December 2008 on strong Acadia sales (up 49 percent) and Terrain (up 197 percent vs. the vehicle it replaced, Pontiac Torrent)

• Cadillac retail sales were up 7 percent, led by the 2010 SRX, with sales 357 percent higher than a year ago (4,880 vs. 1,069)

• December month-end dealer inventory of 385,000 – the lowest year-end level on record

• Total GM crossover retail sales were up 67 percent

“The year 2009 was a watershed year for us in many ways. From our dealer restructuring to our focus on Chevrolet, Cadillac, Buick and GMC, we have made the difficult but necessary decisions to position our new company for success,” Docherty added. “We’re looking forward to 2010 as a year when the economy continues a modest recovery, industry sales begin to improve and our outstanding new products build additional sales momentum.”

“May the Best Car Win” Campaign – 60-Day Money Back Guarantee

GM's 60-day money-back guarantee and “May the Best Car Win” message demonstrated confidence in Chevrolet, Buick, GMC and Cadillac and improved consumer consideration.

“Americans have given our cars, crossovers and trucks a strong vote of confidence, and we take that very seriously,” Docherty said. “We’ve listened to those who’ve returned their vehicles to help us continue designing and building products our customers deserve.”

More than 419,000 vehicles have been sold during the campaign and results show that almost all customers chose to keep their vehicles. Just 310 customers have returned their vehicles – approximately 0.007 percent of all eligible vehicles sold.

MORE

Other Brands Sold 14,687 Total Vehicles in December

GM’s wind-down of non-core brands has been orderly and is now 10 months ahead of schedule. These brands represented 9 percent of retail sales in December, compared with 15 percent in May 2009. Inventories for the combined brands totaled 5,123 units at December month-end, representing a 95 percent decrease compared to the end of May 2009 (112,141 units).

Month-End Inventories of Non-Core Brands (May – Dec, 2009):

May 2009 Dec 2009 % Reduction

Pontiac 70,876 796 99 %

Saturn 32,647 916 97 %

Saab 4,579 1,235 73 %

HUMMER 4,039 2,176 46 %

Management Discussion of December Sales Results

“Increasingly, we are seeing signs of a global economic recovery,” said Mike DiGiovanni, executive director, Global Market and Industry Analysis. “In the U.S., with firm used car prices, low interest rates and an improving economic outlook we expect industry sales to improve after a dismal 2009 performance.”

U.S. Economy

• Overall, economic leading indicators point to a continuing recovery in 2010, although risks remain.

• Job losses slowed significantly in November, and the unemployment rate dropped from 10.2% to 10%. However, this is still high by historical standards.

• Although consumer confidence improved in December to the second highest level in 2009, it is likely to stay tepid due to the high unemployment rate.

• Housing market is mixed. Although existing home sales are surging, new home sales and home prices have softened recently.

• Manufacturing sector continues to expand due to depleted inventory and better than expected holiday sales.

U. S. Auto Industry

• The U.S. December 2009 SAAR is estimated to be approximately the same as November – 11.0 to 11.2 million (total industry estimate) – resulting in total vehicle sales of 10.6 million for the entire 2009 CY, the lowest since 1982.

• Based on the strengthening U.S. economy, 2010 CY sales are projected to rise to between 11.0 to 12.0 million.

GM North America Production

Units 000s Car Truck Total

2009 December 67 112 179

Units O/(U) prior year (38) (32) (70)

% change O/(U) prior year (36%) (22%) (28%)

2009 Q4 236 382 618

Units O/(U) prior year (129) (68) (197)

% change O/(U) prior year (35%) (15%) (24%)

2010 Q1 237 413 650

Units O/(U) prior year 121 158 279

% change O/(U) prior year 104% 62% 75%

GM U.S. Dealer Inventory

Units 000s Car Truck Total

January 4, 2010 149 236 385

Units O/(U) prior year (248) (239) (487)

% change O/(U) prior year (63%) (50%) (56%)

Units O/(U) prior month (20) (34) (53)

% change O/(U) prior month (12%) (12%) (12%)

January 2, 2009 397 475 872

December 1, 2009 168 270 438

[Justin Bimmer]

[Chevy Nick]

Camaro is still beating the Mustang

[Z-06]

I am a little concerned here. In the month when most manufacturers had a double digit gain, GM actually saw its sales decrease. Considering the last two months, GM should have at least ended positive if not had double digit growth.

If you take out the 4 brands of HPSS GM would have ended close to 190,000 or with in Toyota's whiff. Whitacre should take a note.

[Justin Bimmer]

Z06 we don't know what the other companies did in regards to fleet at the end of the year. I wouldn't be surprised if Toyota, Honda, and Ford all fleeted a bunch to make the end of the year look good.

[Z-06]

Z06 we don't know what the other companies did in regards to fleet at the end of the year. I wouldn't be surprised if Toyota, Honda, and Ford all fleeted a bunch to make the end of the year look good.

I understand that.

Let us see if that bloated number means fleet dumping makes sense. If we assumed that Ford sales were 6% below last year just like GM that means Ford actually sold approximately 128,000 vehicles in December 2009. If everything is equal, then the 128,000 should also include regular fleet sales of around 28% just like GM had in December 2009, which means Ford sold 0.28x128,000+52,000 = 88,000 for fleets to bloat the inventory or about 49% of December sales. Now I can understand for Hyundai or Kia, but it is hard to think about Ford, Toyota or Honda. Toyota and Honda are increasing fleet sales, but as Satty has pointed they are probably in the low teens. (Do not have the reference) Like I said if fleets were reduced GM should have seen at least some gain not a loss.

[smk4565]

GM fleets just like everyone else, usually at a higher rate. It is interesting that every automaker gained 10% or better, and Chrysler and GM posted declines. For GM, it probably just reflects their new market share position with 4 brands. As the 4 dead brands get phased out, obviously customers will leave, the 4 remaining brands can't retain everyone. Chrysler didn't close any brands though, it just goes to show how uncompetitive their product line is.

Malibu, CTS, LaCrosse did well, but at the same time, look how pointless the Impala, STS, and Lucerne have become. Not that that is a bad thing, it is good that GM made products good enough to make their old ones look terrible. The Key for GM is going to be sustaining sales levels as models age, and not falling into the old trap of strong sales in years 1 and 2, then not advertising the car and letting it dwindle on the market for 5 more years as people forget about it and need to rename it (Chevy Cavalier and Chevy Cobalt).

[ZL-1]

GM fleets just like everyone else, usually at a higher rate. It is interesting that every automaker gained 10% or better, and Chrysler and GM posted declines. For GM, it probably just reflects their new market share position with 4 brands. As the 4 dead brands get phased out, obviously customers will leave, the 4 remaining brands can't retain everyone. Chrysler didn't close any brands though, it just goes to show how uncompetitive their product line is.

Malibu, CTS, LaCrosse did well, but at the same time, look how pointless the Impala, STS, and Lucerne have become. Not that that is a bad thing, it is good that GM made products good enough to make their old ones look terrible. The Key for GM is going to be sustaining sales levels as models age, and not falling into the old trap of strong sales in years 1 and 2, then not advertising the car and letting it dwindle on the market for 5 more years as people forget about it and need to rename it (Chevy Cavalier and Chevy Cobalt).

Agreed. Right now it is about retention while building up for the next generation of products.

[siegen]

Z06 we don't know what the other companies did in regards to fleet at the end of the year. I wouldn't be surprised if Toyota, Honda, and Ford all fleeted a bunch to make the end of the year look good.

I don't think there's any reason to make that assumption. There are the typical December incentives that most automakers use to boost December sales, but that is nothing new.

[GXT]

Toyota and Honda are increasing fleet sales, but as Satty has pointed they are probably in the low teens. (Do not have the reference) Like I said if fleets were reduced GM should have seen at least some gain not a loss.

Someone once posted a link of all the fleet rates of the various models. I wish I could find that again. Anyways, as I recall, Honda's fleet rate was in the 1-2% range.

Other than that, I agree with your points. It certainly seems like Ford is taking GM and Chrysler share.

[Satty]

Someone once posted a link of all the fleet rates of the various models. I wish I could find that again. Anyways, as I recall, Honda's fleet rate was in the 1-2% range.

Other than that, I agree with your points. It certainly seems like Ford is taking GM and Chrysler share.

automotive-fleet.com has always been my source for numbers, unfortunately 2008 MY mid-year numbers are the most recent they have.

[jrockb4]

Here are the fleet numbers for December as reported on MSNBC:

GM said its sales were down for the month partly because it reduced sales to rental car companies and other fleet buyers. Susan Docherty, vice president of sales, said 23 percent of GM's December sales went to fleets, compared to 20 percent at Toyota, 35 percent at Ford and 50 percent at Chrysler.

http://www.msnbc.msn.com/id/34707522/ns/business-autos/

Looking at the automotive-fleet link from above, that is potential a huge increase for Toyota from MY 2008. I am sure some of you smart (not lazy guys here) can probably compare 2008 to the December numbers. Chrysler is the one that is in deep!

Edited January 6, 2010 by jrockb4

[Justin Bimmer]

Here are the fleet numbers for December as reported on MSNBC:

GM said its sales were down for the month partly because it reduced sales to rental car companies and other fleet buyers. Susan Docherty, vice president of sales, said 23 percent of GM's December sales went to fleets, compared to 20 percent at Toyota, 35 percent at Ford and 50 percent at Chrysler.

http://www.msnbc.msn.com/id/34707522/ns/business-autos/

Looking at the automotive-fleet link from above, that is potential a huge increase for Toyota from MY 2008. I am sure some of you smart (not lazy guys here) can probably compare 2008 to the December numbers. Chrysler is the one that is in deep!

Good find on that!

So if we take these numbers here is what I get for a rough number:

December 2009 Fleet

GM - 47,957

Toyota - 37,572

Ford - 62,655

Chrysler - 43,250

[Satty]

Chrysler has been surviving (if you can call it that) on fleet sales for years, pretty much since everyone realized the 300 isn't the automotive god people made it out to be. If I were a betting man, I'd say Toyota's jump in fleet percentage has something to do with retail buyers not buying Yarises. Really with they would update Automotive-Fleet.

[Justin Bimmer]

Satty I think Chrysler's sales break down like 1/2 fleet then 1/4 or more jeep and ram and some scraps of retail cars.

[Satty]

Just hopped over to the Chrysler sales figures. Wow, every model except the Journey and Wrangler was down at least 27% from 2008. We should all be glad we're not Chrysler fans. Except Dodgefan, we should all pity him.