February 2014: General Motors Co.

[William Maley]

GM’s U.S. Dealers Delivered 222,104 Vehicles in February

• Passenger Cars Sales up 8 percent, paced by Buick and Chevrolet

DETROIT – General Motors Co. (NYSE: GM) dealers delivered 222,104 vehicles in the United States in February 2014. Total sales were down 1 percent compared with a year ago, beating outside expectations. Retail and fleet sales were both down 1 percent. GM increased its sales from January 2014 by 30 percent, more than 10 percentage points better than the industry as a whole.

“Weather continued to impact the industry in February, but GM sales started to thaw during the Winter Olympic Games as our brand and marketing messages took hold,” said Kurt McNeil, U.S. vice president of Sales Operations. “Car and crossover sales were particularly strong at Buick and Chevrolet, and we continue to have a strong mix of pickup sales.

“Despite a slower start to 2014 than most people expected, we look forward to a very successful year, backed by plenty of new products and what should be the strongest GDP growth since the end of the recession.”

February Sales Highlights (vs. 2013)

• Passenger car sales were up 8 percent, with Buick deliveries up across the board.
• The Chevrolet Sonic, Cruze and Malibu posted double-digit sales increases.
• The Chevrolet Cruze and the Buick Verano had their best February sales ever.
• Deliveries of the Corvette were up 149 percent.
• The all-new 2014 Cadillac CTS sedan helped drive a 7 percent increase in retail sales for the CTS range. Segment share is estimated to be up 1.6 points.
• Crossover sales were up 4 percent. Sales of the Buick Encore nearly doubled, the Cadillac SRX was up 23 percent and GMC Acadia deliveries were up 2 percent. The Buick Enclave and Chevrolet Equinox had their best February sales ever.
• Retail deliveries of Chevrolet and GMC large SUVs were up 14 percent.
• GM’s retail share of light-duty pickup sales increased an estimated 2 percentage points or more from January 2014.
• The mix of light duty pickups powered by GM’s all-new EcoTec3 V6, which offers best-in-class fuel economy, towing and payload (depending on configuration) increased 2 percentage points month over month to about 20 percent of retail sales.
• The average transaction prices for GM’s full-size pickups were in line with January 2014 levels, according to mid-month J.D. Power PIN estimates. More than half of light-duty pickup sales continue to be premium-contented models.
• Incentive spending increased slightly month over month on both an absolute basis and as a percentage of average transaction prices due primarily to the sell-down of older model heavy-duty pickups and large SUVs. GM’s increase was less than the industry average, according to J.D. Power PIN.
• GM increased its commercial fleet sales for the fourth month in a row, with deliveries up more than 1 percent; commercial deliveries are up 8 percent year to date.

[smk4565]

99 ELRs sold year to date. I guess Cadillac found 99 fools to pay $76k for a Volt, let's assume they keep the pace and move 600 this year. In year 2 will sales decline because I imagine anyone that actually wants one will buy it in year one. Another flop for Cadillac, although this one bigger than the XLR or Allante, those cars at least survived about 5 years, I doubt the ELR will make it past 3.

I always thought small Buicks would work because there are so few small cars that offer luxury and comfort. There are small sporty cars like the bottom end of Acura and Volvo or Mini Coopers, but those are tailored to sporty driving. There was never a smaller, cheaper version of a Lexus, and Buick has hit that target with the Encore and Verano. Well done to them, and that was a segment that Ford totally missed on with Mercury and Lincoln, Chrysler has too, any one of them could have made small premium vehicles, but they were too blind to see it and thought luxury had to be huge sedans or SUVs. Luxury does not equal size, like most American companies thought for years, so credit to GM for putting Buick in a position to capitalize on that.

[ocnblu]

Silverado, DOWN 12.1%? That has to be very troubling for them... their cash cow, BRAND NEW in the market. For one thing, these trucks are WAY overpriced.

[smk4565]

The new Silverado looks similar to the old one, it is hard to tell them apart unless side by side. And the engines and transmissions are basically carry over, they might claim it is new, but it is still a 5.3 V8. HP and gas mileage might be up slightly, but there is nothing ground breaking added to these trucks. They have up to $7,000 discounts in March so maybe that will get sales going.

[Z-06]

The new Silverado looks similar to the old one, it is hard to tell them apart unless side by side. And the engines and transmissions are basically carry over, they might claim it is new, but it is still a 5.3 V8. HP and gas mileage might be up slightly, but there is nothing ground breaking added to these trucks. They have up to $7,000 discounts in March so maybe that will get sales going.

Partially agreed. Sometime incremental improvements go long way. Triple sealed doors, much better dash interiors, full box frame for structural rigidity are welcome features along with others. What these trucks lack are no innovations in space usage or tech transferred from Avalanche.

Regarding your comment on it is still a 5.3:L. Chevroletdes Benz and GMW have been using their 3.5 and 3L, respectively, for eternity. Those are basically carry overs too right?

[smk4565]

Regarding the Mercedes 3.5, that engine came out around 2006, after about 5 years they reworked it and added direct injection so it got a power boost, and they are phasing it out next year for the 3.0 turbo V6, but it will have had about a 10-12 year run. The BMW straight six has been around forever yes, but they also have added the turbo 4, added diesels changed around the M engines, so the 3-series each generation has offered something fresh.

On the pick up truck front, Ram added the diesel and an 8-speed, Ford is planning the 2.7 Ecoboost V6 and a rumored diesel, plus the weight savings, so those two have offered something new to attract new buyers. With luxury cars, you have a market of current luxury car buyers and people trading up, with pickups I feel more like you have to steal buyers from the other brands, because people probably aren't going from a Camry to a Tundra like they go from a Camry to a Lexus. That is why Ford is making radical changes with the F150, GM didn't really make any huge improvement that is going to make F150 drivers switch.

[Z-06]

So for same displacement if Chevroletdes Benz and GMW put direct injection and VVT, etc. and ride it forever it is considered advancement, but for GM doing the same for the 5.3L, it is considered, it is still 5.3L? Unlike BMW, GM has made no engine additions and enhancements? DI 2.0L T was in Solstice in 2006, GMW only came to the party in 2011, so much for being a tech leader!

[2QuickZ's]

I did my part for the monthly increase in Cruze sales! I can honestly say I probably would not have bought one if it wasn't available with a diesel.

I know the SS was intended to be a low volume niche car but I would have to believe they were hoping for more than 300 sales per month. Wasn't it targeted for around 1K per month or am I confused? Perhaps they just haven't been able to get too many shipped over. It could be a future collectible with Holden closing up shop soon. I doubt GM will transfer production to a U.S. plant for that small of a volume but they may surprise me.

Buick is doing quite well. I'm betting the Verano and Encore are both out performing expectations. Cadillac on the other hand... I really don't understand why they aren't doing better with the ATS and especially the CTS. Hopefully they can refine the turbo 4 a bit for next MY and that will help.

[smk4565]

They improved the 5.3, and it isn't that old an engine, it isn't like the Northstar circa 2010 when it had been on the market for 17 years with little improvement. But upping hp by 40 and adding 1 mpg and adding $2,000 to the price isn't really going to draw in hoards of new buyers. The 2014 Silverado is better than the 2013, but it is a minor evolutionary improvement, I just don't think they did enough to "wow" anyone.

[Z-06]

Do not tag other issues with the engine. GM is contemporary with the 5.3L.

Wow factor is relative. It wowed Car and Driver, it wowed other magazines with how quiet and car like it rode. The truck is bling-free and honest. It has rough edges, but it's not horrible. But that said, are there improvements needed yes. Is the price justified may be not. I think the cars have become expensive in general. But then again, I think purchasing power of people has decreased much more in this decade and prices have spiraled due to inflation.

There is an article, which stated GM had almost $1,500 less discounts on the trucks than next nearest Dodge followed by Ford. And the time the trucks sat on the lots is less than the others' times. Also, the average transaction price was higher than Ford and Dodge vehicles. BTW discounts are back in March so you will get your volume wish fulfilled.

[daves87rs]

Pretty good...though I am amazed how well the Cruze is doing....Current style has been going for 4 years now. And I still like the design.

Hoping they don't "sonic" it too much...

And the silvys are nice trucks, but there is no "wow" factor with them at all.....

[G. David Felt]

I agree that the Chevy Version has no WOW factor, but I think the GMC version of the trucks has a WOW factor.

The GMC Truck will age very nicely.

[Drew Dowdell]

They improved the 5.3, and it isn't that old an engine, it isn't like the Northstar circa 2010 when it had been on the market for 17 years with little improvement. But upping hp by 40 and adding 1 mpg and adding $2,000 to the price isn't really going to draw in hoards of new buyers. The 2014 Silverado is better than the 2013, but it is a minor evolutionary improvement, I just don't think they did enough to "wow" anyone.

They didn't "improve" the 5.3... it shares nothing with the prior engine except displacement and bell housing bolt pattern. It is a new engine with the same displacement.