March 2006 Sales: General Motors

[Guest Josh]

2007 Chevy Tahoe Sales Exceed 10,000 Units in March; Up 41 Percent Compared to February

2007Cadillac Escalade Sales Rise 68 Percent vs. February; GMC Yukon Sales Up 109 Percent

Premium Brands, Cadillac, HUMMER, Saab and Buick, All Post Sales Gains in March

GM's Total Sales Down Compared to Strong Year-Ago Results

DETROIT - General Motors dealers in the United States sold 365,375 new cars and trucks in March, down 14 percent compared to year-ago levels. Total car sales were down 22 percent, and truck sales were down 9 percent.

GM's retail sales in March were down 17 percent compared to strong year-ago deliveries. Fleet sales were down 5 percent. Daily rental sales declined by 8 percent compared to last year. Commercial sales were up 7 percent.

"March sales were solidly in line with the targets established in our U.S. turnaround plan," said Mark LaNeve, General Motors North America vice president, Vehicle Sales, Service and Marketing. "We knew that comparisons to a year ago would be difficult because of high daily rental sales and expensive incentives last March. We are pleased that consumers are reacting very favorably to our great new products, with the Chevy Tahoe, Impala and HHR; Buick Lucerne; Cadillac Escalade; and GMC Yukon all having a great month."

Consumers in March continued to respond enthusiastically to General Motors' new models. Retail sales of GM launch vehicles were up 30 percent compared to February and accounted for one-third of GM's total deliveries for the month.

Success of GM's launch vehicles is a critical component of GM's North America turnaround strategy.

LaNeve went on to explain that March retail deliveries of new models were led by robust sales of GM's all-new full-size utilities. The 2007 Chevrolet Tahoe posted 10,126 total deliveries and 9,505 retail deliveries. Total 2007 Tahoe deliveries in March were up 41 percent compared to February. Total Tahoe sales rose 20 percent compared to year-ago levels.

The 2007 Escalade posted 2,761 total deliveries and 2,669 retail deliveries. Total 2007 Escalade deliveries were up 68 percent compared to February. Total Escalade sales were up 45 percent compared to year-ago levels.

The 2007 GMC Yukon had 3,419 total deliveries and 3,309 retail deliveries in March. March deliveries of the all-new Yukon were more than double its total sales in February (+109 percent).

"Given the strong consumer demand for these great new vehicles, we're feeling good about our decision to increase and pull ahead production," LaNeve said.

GM's retail selling rate in March was 3.0 million units, a level that is consistent with GM North American Operations' turnaround strategy. The retail selling rate has stabilized in recent months, improving from just above 2.7 million units in the fourth quarter of 2005.

"We've made a strategic decision to focus on retail sales and move away from marginally profitable business that in the end is a drag on our sales results and profitability," LaNeve added. "This is how we are providing consumers with the best value in the industry, building strong brands, improving the quality of our market share and turning around our U.S. business."

Other new vehicles also recorded solid retail sales results in March. Lucerne, Buick's all-new luxury sedan, posted its best total and retail sales since its introduction in October 2005. March retail deliveries were 73 percent greater than year-ago LeSabre retail sales. Through the first quarter, Lucerne's retail sales account for more than 40 percent of Buick's total retail deliveries.

Consumers and dealers continue to respond very favorably to the new Chevrolet Impala. Retail sales in March were 16 percent greater than February and the sales mix has been very favorable, with strong demand for the SS version. Additionally, dealer orders for Impala have exceeded expectations. HHR also posted solid sales results in March, with retail sales up 4 percent compared to February, despite lean dealer inventories.

HUMMER set another sales record in March, with total sales up 176 percent. Retail deliveries rose 165 percent. HUMMER's March results were driven by continued strong H3 sales. H3 has widened its sales lead in the entry luxury utility segment, capturing over 70 percent of the segment for the calendar year-to-date.

Saab also improved its retail sales performance in March, with retail deliveries up 15 percent. This increase was led by 9-3 sales and the addition of the 9-7X to Saab's portfolio.

The redesigned Saturn Vue lengthened its streak of year-over-year sales improvements, posting a sales increase for the tenth consecutive month.

Certified Used Vehicles

March sales for GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles and HUMMER Certified Pre-Owned Vehicles, were 47,170 units, up 15.5 percent from last March. Certified sales from Used Cars from Saturn were unavailable at press time. Total year-to-date certified GM sales, excluding March sales of Used Cars from Saturn, are 124,232 units, comparable to the same period last year.

GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 42,536 sales, up 6 percent from last March and up 20 percent from February 2006. Year-to-date sales for GM Certified Used Vehicles are 112,490 units, down 1 percent from the same period in 2005.

Cadillac Certified Pre-Owned Vehicles posted 3,874 sales in March, up 10 percent from last year. Saab Certified Pre-Owned Vehicles sold 760 units, up 6 percent. In its third month of operation, HUMMER Certified Pre-Owned sold 83 units.

"March was an outstanding month for GM certified sales, posting a strong increase over a very solid March performance last year," LaNeve said. "The industry's top-selling certified brand, GM Certified Used Vehicles, continues to set the pace for the certified segment, with sales of 42,536 units in March, the segment's third best monthly sales performance ever."

GM North America Reports March and 2006 First-Quarter Production; 2006 Second-Quarter Production Forecast Remains Unchanged

In March, GM North America produced 460,000 vehicles (182,000 cars and 278,000 trucks). This is up 59,000 units, or 14 percent, compared to March 2005 when the region produced 401,000 vehicles (162,000 cars and 239,000 trucks). Production totals include joint venture production of 15,700 vehicles in March 2006 and 22,000 vehicles in March 2005.

GM North America built 1.255 million vehicles (496,000 cars and 759,000 trucks) in the first quarter of 2006. This is up 73,000 units, or 6 percent, compared to first quarter 2005 when the region produced 1.182 million vehicles (470,000 cars and 712,000 trucks). The region's 2006 second-quarter production forecast remains unchanged at 1.20 million vehicles (445,000 cars and 755,000 trucks). In the second quarter of 2005, the region produced 1.247 million vehicles (458,000 cars and 789,000 trucks).

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

GM Europe - GM Europe's 2006 first-quarter production estimate remains unchanged at 497,000 vehicles. In the first quarter of 2005, the region built 502,000 vehicles. The region's 2006 second-quarter production forecast also remains unchanged at 490,000 vehicles. In the second quarter of 2005, the region built 501,000 vehicles.

GM Asia Pacific - GM Asia Pacific's 2006 first-quarter production estimate is unchanged at 470,000 vehicles. In the first quarter of 2005, the region built 335,000 vehicles. The region's revised 2006 second-quarter production forecast is 474,000 vehicles, down 6,000 units from last month's guidance. In the second quarter of 2005, the region built 398,000 vehicles.

GM Latin America, Africa and the Middle East - The region's 2006 first-quarter production estimate is unchanged at 193,000 vehicles. In the first quarter of 2005, the region built 185,000 vehicles. The region's 2006 second-quarter production forecast remains unchanged at 215,000 vehicles. In the second quarter of 2005, the region built 195,000 vehicles.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 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 operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. 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, our use of the words "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions is intended to identify forward looking statements. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors that are described in GM's most recent report on SEC Form 10-K (at page II-20) which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among others, the following: changes in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation's new products; significant changes in the competitive environment; changes in laws, regulations and tax rates; and, the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and times planned by management.

[Newbiewar]

did they have a good month last year?

what was sales for 2004?

[toyoguy]

2007 Chevy Tahoe Sales Exceed 10,000 Units in March; Up 41 Percent Compared to February

2007Cadillac Escalade Sales Rise 68 Percent vs. February; GMC Yukon Sales Up 109 Percent

why does GM compare these vehicles to last February

comparing them to last March makes more sense. Now if March 05 was unusually good it'd work fine, but it wasn't

March 05

http://media.gm.com/servlet/GatewayServlet...n=3&docid=13554

[Newbiewar]

why does GM compare these vehicles to last February

comparing them to last March makes more sense.  Now if March 05 was unusually good it'd work fine, but it wasn't

March 05

http://media.gm.com/servlet/GatewayServlet...n=3&docid=13554

they arent comparing those vehicles to 05...

they are comparing 07's in feb (2006) to 07's in March(2006)... and its unfair just because inventory was insufficent in february...

[bowtie_dude]

why does GM compare these vehicles to last February

comparing them to last March makes more sense.  Now if March 05 was unusually good it'd work fine, but it wasn't

March 05

http://media.gm.com/servlet/GatewayServlet...n=3&docid=13554

I think they were comparing it to Feb 06, not Feb 05.

[CSpec]

Lacrosse got hammered, but Lucerne is doing very well.

CTS still doing well despite its age, DTS doing well. STS needs that refresh.

Cobalt went up a lot... fleet sales? Malibu tanked, probably switching off fleet sales with the Cobalt.

G6 did well, but with the Grand Prix going down you have to wonder if they cut Grand Prix fleets to sell more G6s.

Good thing the SRX is getting an interior redo this summer.

Colorado needs a redesign, but that's still 2 years away.

Equinox needs a refresh, which will arrive shortly.

Tahoe doing well, but Yukon sales went down...?

All in all a bumpy month, but help is on the way shortly.

[Northstar]

They probably compared the 07 SUVs to the previous month to show they are still gaining momentum. Comparing it to last years numbers doesn't really tell you a whole lot since it has 06 sales in there too.

I'm guessing Yukon sales were down due to lack of supply still. My dealer just got their first two Denalis in the other day. Notice 2007 Yukon sales were up 109% vs. Feb.

All in all, a bad month for GM, but it's going to be that way until customers get used to not having big incentives.

[Matt276]

GM really needs a hit on the car side. The new Malibu can't come soon enough.

I suppose all the vehicles sold in march were sold close to sticker.

[jrockb4]

STS needs that refresh.

Good thing the SRX is getting an interior redo this summer.

How can you says the STS needs a refresh already? Have you compared STS sales to Seville sales over the previous couple of years? The Seville was lucky to break 1000 units in most months, while the STS is a consistent 2200+ player.

As for the SRX, I am not sure what anyone at GM was smoking when they talked about 60k per year. I said it then, that is an unrealistic goal. The SRX has settled in right with the competition (X5 and M Class) and double the Touareg. I think to ask for anything more right now is a bit much.

[Chicagoland]

Lucurne is doing well, despite those that claimed losing the PA and LeSabre names would hurt Buick. TO me it was time to ditch names that reminded people of Geritol, Depends, and Preparation H.

[Petra]

When do Q1 results come in? I'm more than a little curious to see how much GM has lost so far this year, and wether the cost-cutting measures have had any effect yet.

[sciguy_0504]

I was just wondering, when it says the Tahoe had 10,126 total deliveries and 9,505 retail deliveries (along with the other two brand new SUVs), does that mean a few hundred went to fleets?

[Northstar]

I was just wondering, when it says the Tahoe had 10,126 total deliveries and 9,505 retail deliveries (along with the other two brand new SUVs), does that mean a few hundred went to fleets?

Yes, I believe so. I suppose some could be GM Company vehicles (like something they would use to transport execs to and from meetings maybe) but that probably means that about 9% of the new Tahoes are going to rentral car companies or government agencies, etc.

For comparison, the old Tahoe had about 8% going to fleet on average, so 9% is about the norm.

[Ghost Dog]

I don't think the 60 minutes thing is going to help. Any talk of GM Bancruptcy is bound to hurt sales. They need to get things Tidied up. Then hope the people who heard the bancruptcy talk hear the opposite if it comes.

[I hope GMRULES again]

I don't think the 60 minutes thing is going to help.  Any talk of GM Bancruptcy is bound to hurt sales. They need to get things Tidied up. Then hope the people who heard the bancruptcy talk hear  the  opposite if it comes.

No doubt the bankruptcy stuff is hurting sales.I can't blame anybody for avoiding GM right now with all the talk in the media. I personally talked to two different people last weekend who are in the market for a new car and they are both happy current GM owners, one said they'll pass on GM for sure this time and the other one isn't sure what to do. Edited April 4, 2006 by I hope GMRULES again

[01Malibu]

http://media.gm.com/servlet/GatewayServlet...=74&docid=24824

[Flybrian]

Heh. The 9-2x was nearly outsold by the Aztek. And, man, RELAY sales took a dump.

[SingleStylish]

Anyone else notice that the Sky sold 134 last month?

[FUTURE_OF_GM]

Chevrolet/Chevy Trucks: Why is Aveo down so much??? Ramp up for the new model? Cobalt is through the roof! (Hope it isn't fleet--I don't think it is, as GM cut back fleet sales) Impala is flat; good I guess. Malibu is up slightly and MC is down (Seems like the ramp up has been VERY SLOW and I *STILL* don't see many on lots, or any promotion. It's a shame that the MC is Chevrolet's 'bastard child') Colorado needs a refresh BADLY! Equinox has died (Sad after it did so well in the beginning) Tahoe is amking MARKED gains. Trailblazer needs a refresh, but isn't off too much. The Uplander numbers are surprising. Avalanche is WAY off, no doubt due to the change over.

Pontiac: SV6 is showing good numbers (percentage-wise) G6 is up HUGE!!!! Hope it isn't all fleet! GP up, again, hope it isn't fleet. GTO down and Vibe is WAAAY down. Why?

GMC: Canyon is D.O.A. how about that refresh GM? Envoy is down quite a bit, maybe the Acadia will fix that hole. Sierra is a bit off just like Silverado, Yukon and Yukon XL showing bad numbers, no doubt because of the switch.

Buick: ALL OF THE BUICK TRUCKS ARE UP, Terazza, Rainier (These 2 especially) and Rendezvous! Lacrosse is down a lot Could the Lucerne be cannabalizing it??? (Well, at least until Edmunds and Co kill it's momentum)

Cadillac: CTS is flat and still strong despite its age. DTS is carrying the division though! XLR is down pretty bad (But it is/was winter) and the STS is down quite a bit... Not good GM. Escalade is up and EXT and ESV are down no doubt because of the ramp up.

Saab: 9-2X is STILL tanking... 9-5 is surprisingly down given the new redesign?!?!? 9-3 is flat and doing well.

Saturn: Ion is down, Relay TANKED but Vue is STILL selling well!!!

Hummer: H1 is up, H2 not doing so well, H3 has been a runaway success!

[Sixty8panther]

CTS still doing well despite its age, DTS doing well. STS needs that refresh.

The STS is only two years old and pretty "fresh", it's the CTS that needs a refresh.