Big 3 lose ground to the imports

[Guest Josh]

From the domestic automakers good journalist friend........yup you guessed it: Christine Tierney!

Sales of import brands rose sharply in the first half of August as Detroit automakers ran out of new car and truck supplies after extending generous employee-style discounts to all buyers.

General Motors Corp., which initiated the employee discount plan in June, saw its share of the U.S. market drop from 29 percent in July to below 25 percent in the first two weeks of August, according to online auto research site Edmunds.com.

Ford Motor Co. and Chrysler Corp., which matched GM's plan in July, fared slightly better in the first half of August while Japanese automakers Toyota Motor Corp. and Honda Motor Co. captured a record share of the U.S. light vehicle market, according to Edmunds.com data.

Overall, U.S. light-vehicle sales in August are tracking above year-earlier levels, according to investment firm Deutsche Bank. It estimates sales are running at a seasonally-adjusted, annualized rate of 17.6 million vehicles in August, a robust level, but below July's torrid pace of 20.6 million units.

http://www.detnews.com/2005/autosinsider/0.../C01-285992.htm

[Matt276]

I don't understand, at the end of the article, they mention that GM's sales are up 6% and is at 28% market share for the first two weeks of august :huh:

[Northstar]

I don't understand, at the end of the article, they mention that GM's sales are up 6% and is at 28% market share for the first two weeks of august :huh:

[post="614"]<{POST_SNAPBACK}>[/post]

Well one estimate was by Edmunds and the other was by Deutsche Bank. I'm not sure who to trust but Edmunds isn't always the most reliable source.

I also find it hard to believe that Toyota has sold more cars this month than DCX, but I suppose it's possible.

[NOS2006]

I also find it hard to believe that Toyota has sold more cars this month than DCX, but I suppose it's possible.

[post="624"]<{POST_SNAPBACK}>[/post]

Me neither. Especially since they have the LX platform out there tearing up and the trucks to back those up. Who knows...

[Newbiewar]

well if we had any vehicles here at the dealership then we could sell some cars... but honnestly of an inventory of nearly 400 vehicles, we have 8 cars :( comon GM, deliver so we can deliver...

[Alpha]

From the sound of it, this is smoke and mirrors... The domestics did so well...that they've run out of cars... When you can't sell a car...one isn't bought (dur). Therefore since you aren't selling cars, your market share plummets as others are still selling.

[Alpha]

I'll try to say this differently...lol... Theoretical: Week 1 August: GM sells 800, Toyota sells 400. GM has 60% market share, Toyota has 30%. Week 2 August: GM is running out of cars to sell and sells 400. Toyota sells 400. Both have 50% market share. Week 3 August: GM is effectively out of cars waiting on deliveries, sells 200 cars. Toyota sells 400. Toyota has 60% market share, GM 30%. GM is doing better, but if you ignore some certain data...you can skew the results.

[andy82471]

I'll try to say this differently...lol...

Theoretical:
Week 1 August: GM sells 800, Toyota sells 400.  GM has 60% market share, Toyota has 30%.
Week 2 August: GM is running out of cars to sell and sells 400.  Toyota sells 400.  Both have 50% market share.
Week 3 August: GM is effectively out of cars waiting on deliveries, sells 200 cars.  Toyota sells 400.  Toyota has 60% market share, GM 30%. 

GM is doing better, but if you ignore some certain data...you can skew the results.

[post="1023"]<{POST_SNAPBACK}>[/post]

Good point, Alpha your argument makes sense. But isn't the 06 MY cars already on the dealer lot. Or maybe GM hasnt ramped up 06 production yet?

[andy82471]

Some financial analysts are speculating that 06 will also be a downer for the big three. 2007 will be the year when hopefully things will turn around for GM. I am not very optimistic about FORD though.

[staceface]

Andy, I too agree with your outlook for FORD. They have such disappointing results - I really thought that Thunderbird was gonna set the world on fire, then I thought the Mustang might. Now keep in mind, I'm not reading statistics, or checking graphs, I'm just watching the same 11 Mustangs sit in the Ford dealership across the street on a daily basis.

[Paolino]

Wow, Stace... I thought the Mustang was selling well!

[andy82471]

Wow, Stace... I thought the Mustang was selling well!

[post="1936"]<{POST_SNAPBACK}>[/post]

I thought so too. That seems to be the only FORD car that is actually doing well.

[Newbiewar]

Good point, Alpha your argument makes sense. But isn't the 06 MY cars already on the dealer lot. Or maybe GM hasnt ramped up 06 production yet?

[post="1920"]<{POST_SNAPBACK}>[/post]

The only 06 models we have on our lot In SoCal, is Impala SS, Silverado, Tahoe, Suburban, Equinox, Trailblazer, uplander, HHR, Avalanche, Colorodo, Express vans, but we have NO COBALTS, we have 2 aveos, we have 2 05 imaplas, 3 malibu maxx's and 1 Impala SS 06, that is all the cars we have... the dealer on the top 10 for Chevrolet volume in the country has 9 cars on the lot... Is there any wonder that we are going to have a slump of a sales month?

When in the western USA, we have half of the silverado 05's left... but we only have 9 cars :o

our warehouse is completely empty, and our roof is half empty... Chevrolet is going to have a really bad month... I can see through the sales of the month, and although I'm new to the dealer... No one is happy about the way the sales are going so far this month...