January 2010: GM core brand sales up 30%

[Drew Dowdell]

Chevrolet, Buick, GMC and Cadillac Retail Sales Up 3 Percent

Total Sales for Core Brands Up 30 Percent

• Fourth Consecutive Month of Retail Sales Gains for GM's Four Brands
• Chevy Equinox, GMC Terrain and Cadillac SRX Retail Sales Up 161 Percent
• Fleet Sales Comprise 29 Percent of Total Sales

DETROIT – U.S. dealers for GM's brands – Chevrolet, Buick, GMC and Cadillac – reported retail sales of 102,420, up 3 percent compared to January 2009, and 145,098 total sales (up 30 percent). These results were driven by the continued strong growth of new GM crossovers and passenger cars. For the month, GM dealers reported 146,825 total sales (including other brands), representing a total sales increase of 14 percent from the previous year.

"This is the fourth month in a row that Chevrolet, Buick, GMC and Cadillac have shown a collective year-over-year retail sales increase," said Susan Docherty, GM vice president, Sales, Service and Marketing. "Our long-term plan to continue to focus and strengthen our brands is delivering results."

Chevrolet, Buick, GMC and Cadillac comprised 98 percent of the company's retail sales in January, compared to 85 percent a year earlier. Retail sales, including other brands, in the U.S. were 104,122 during the month. This represents a 10 percent decline from a year ago, driven by other brand sales – Pontiac, Saturn, Saab and HUMMER – that were 90 percent lower. GM dealers delivered 42,703 fleet vehicles, comprising 29 percent of total deliveries for the month.

Other Key Facts:

• Chevrolet Equinox retail sales increased 67 percent; estimated retail share of the compact crossover segment is up 5 points (Jan. 2009 vs. Jan. 2010)
• GMC Terrain retail sales were up 162 percent (compared to the vehicle it replaces, Pontiac Torrent); estimated retail share of the compact crossover segment is up more than 3 points (Jan. 2009 vs. Jan. 2010)
• Cadillac SRX retail sales were up 218 percent vs. last year, the fifth consecutive month it has gained more than 100 percent year-over-year; SRX gained approximately 15 points of retail share in the Mid-lux SUV crossover segment (Jan. 2009 vs. Jan. 2010)
• In their first year on sale, GM Compact Crossovers – Chevrolet Equinox and GMC Terrain – have become the second best selling crossovers in the industry
• GM sells more crossovers than any other automaker, representing approximately 20 percent of industry crossovers sold
• Buick LaCrosse retail sales were up 142 percent, the fourth consecutive month it has gained more than 100 percent year-over-year; LaCrosse gained an estimated 12 points of retail segment share, making it number one in its segment (Jan. 2009 vs. Jan. 2010)
• Chevrolet dealers sold 5,371 Camaros – the eighth straight month it has outsold Mustang

"Our launch vehicles such as the Chevrolet Equinox and Camaro, Buick LaCrosse, GMC Terrain, and Cadillac SRX continue to attract new customers to our brands," Docherty said. "In addition to styling and fuel efficiency, customers have told us they want safe, high quality vehicles. They can have peace of mind knowing that our vehicles come standard with our 5-year, 100,000 mile powertrain warranty and OnStar."

Management Discussion of January Sales Results

"Global economic recovery is picking up pace," said Mike DiGiovanni, executive director, global market and industry analysis. "In the U.S., we are seeing a strong rebound in manufacturing and stabilization of consumer confidence, which will support a slow but steady improvement in the vehicle market."

U.S. Economy

• Leading economic indicators point to a continuing recovery in 2010, although risks remain
• Job losses continue to decline, but initial claims of unemployment remain high, indicating continuing reduction in the labor force. Unemployment is likely to stay near 10 percent
• Consumer confidence stabilized at the December level. Consumer vehicle buying attitude is improving, but consumers don't anticipate a strong recovery in jobs and income
• Home prices have stabilized in large parts of the country. Housing starts dropped 4 percent in December, but rising housing permits indicate construction will pick up in coming months
• The manufacturing sector continues to expand. Corporate profit reports show the corporate sector is positioned to expand as the economy improves

U. S. Auto Industry

• The U.S. January 2010 SAAR is estimated to be approximately 11.0 to 11.3 million (total industry estimate) – largely on par with Q4 2009 sales
• Based on the strengthening U.S. economy, we are increasing our 2010 CY sales outlook to 11.5 to 12.0 million (total vehicle)

[Z-06]

Cadillac SRX retail sales were up 218 percent vs. last year, the fifth consecutive month it has gained more than 100 percent year-over-year; SRX gained approximately 15 points of retail share in the Mid-lux SUV crossover segment (Jan. 2009 vs. Jan. 2010)

Dear SRX welcome to your new role of prissy mommy mobile. GM

[Drew Dowdell]

I'll take it. I don't at all mind it going to a FWD bias platform with this kind of sales performance.

[daves87rs]

About time!

[Z-06]

I'll take it. I don't at all mind it going to a FWD bias platform with this kind of sales performance.

+1. Just to say that the majority of buyers in this group do not care what wheels drive the vehicle.The market needs a vehicle which is good looking, reliable and has tons of technology features. All of which are part of the SRX.

[Justin Bimmer]

Younger moms in Cadillacs is a good thing

[siegen]

There's no point in looking at just the core brands sales percentage, since it's going to be skewed by people moving from non-core brands. You gotta take the good with the bad. Overall sales up 14% is still really good for GM, though it was made up by a lot of fleet sales (nearly a third).

You know, if any other automaker took a previously RWD vehicle and made it into a FWD mommy-mobile, even if it improved sales, they'd never hear the end of it!

[GXT]

So if my math is right, fleet was 10.9% of GM's sales in Jan 2009 and 29.4% of their sales on Jan 2010. I guess the reduction in fleet sales that they have been trumpeting for the past year or two wasn't actually a strategy to improve resale. That is a shame.

At least GM had the good sense not to talk resale. Ford's release was the worst in this regard... within a paragraph or two of proclaiming their much improved resale value they were claiming fleet increases of 154%!

[mustang84]

Why was the Cadillac car lineup down so much vs. January '09? Has the SRX cannibalized sales of the CTS and DTS (and STS, but STS is getting long in the tooth anyway)?

The Equinox is still selling like hotcakes.

[mustang84]

So if my math is right, fleet was 10.9% of GM's sales in Jan 2009 and 29.4% of their sales on Jan 2010. I guess the reduction in fleet sales that they have been trumpeting for the past year or two wasn't actually a strategy to improve resale. That is a shame.

At least GM had the good sense not to talk resale. Ford's release was the worst in this regard... within a paragraph or two of proclaiming their much improved resale value they were claiming fleet increases of 154%!

But you have to note that they also mentioned the majority of their fleet sales increases were to commercial and government buyers, which is a totally different animal from daily rentals. Government & especially commercial have higher profit margins and less effect on resale values. Also note that the press release mentioned Ford's average resale values were up $1300 in 2009 and had the largest gain of all manufacturers that year.

[balthazar]

GM at 29% fleet is supposedly fine - I have read numerous sources that state above 30% is where 'damage' can begin to occur.

[FloydHendershot]

So if my math is right, fleet was 10.9% of GM's sales in Jan 2009 and 29.4% of their sales on Jan 2010. I guess the reduction in fleet sales that they have been trumpeting for the past year or two wasn't actually a strategy to improve resale. That is a shame.

At least GM had the good sense not to talk resale. Ford's release was the worst in this regard... within a paragraph or two of proclaiming their much improved resale value they were claiming fleet increases of 154%!

Yea, wouldn't want fleet sales ruining your resale value when you can just have a crappy floor pedal doing that for yer.

[Drew Dowdell]

Market share went from 15 to 20 in a year.... not shabby

[Robert Hall]

Sounds like the year is off to a good start. Here's to continued good months for the rest of the year.

Edited February 3, 2010 by Cubical-aka-Moltar

[pow]

And even if these cars go to rental fleets, at least they're good cars that might convince a buyer to choose GM or Ford...

A Malibu or Fusion might change perceptions. A Sebring, on the other hand...

[smk4565]

Cobalt was up 170%, I guess Avis had a big order this month.

Good performance from the new models. And it looks like Chevy/Buick/GMC have retained the would be buyers of the dead brands. With 4 brands they are doing better than they did with 8. Toyota falling apart also helps. I hope Toyota's misery lasts a few more months.

[Chevy Nick]

Camaro beat Mustang by about 700 units

[Justin Bimmer]

I wouldn't be surprised at all if SRX sales are cannibalizing sales from other Cadillac models. It's a well packaged CUV that can appeal to many types of people. There is a reason why the RX is such a high seller.

[regfootball]

+1. Just to say that the majority of buyers in this group do not care what wheels drive the vehicle.The market needs a vehicle which is good looking, reliable and has tons of technology features. All of which are part of the SRX.

the article i read on lexus basically being so popular earlier this past decade was not because of their sedans competing with BMW, it was due to the RX selling so well and being the poster child of the Lux SUV boom. So Lexus may have gained sales, but no brand equity from pushing all those RX's.

[regfootball]

So if my math is right, fleet was 10.9% of GM's sales in Jan 2009 and 29.4% of their sales on Jan 2010. I guess the reduction in fleet sales that they have been trumpeting for the past year or two wasn't actually a strategy to improve resale. That is a shame.

At least GM had the good sense not to talk resale. Ford's release was the worst in this regard... within a paragraph or two of proclaiming their much improved resale value they were claiming fleet increases of 154%!

speculation on 'fleet' for Ford includes a lot of early sales for Transit Connect to businesses waiting for a while for that vehicle to hit market. that type of fleet vehicle (not hertz etc.) is good fleet sales and does not affect resale.

[ocnblu]

So far, so good.

[gm4life]

What a good month for General Motors! The new Equinox and Terrain aren't able to stay on the lots around here! This is the day I have waited my entire life for... The Malibu (16,439) out-sold the Camry (15,792). **I never thought I would see the day, but alas it has finally come.** The new SRX has also started to pop up on the roads, I just hope GM can keep this up! Sales of the GMT-900 SUV's were also up, another good sign.