GM Inside News is reporting that the expected 3L variant of the high feature 3.6L V6 is on the way for the new Buick Lacrosse crossover, and in that application makes 250 hp.
We are still hoping to see a 270hp variant for the CTS and the new Alpha Sedan, as we discussed here.
This would be an engine that may add a few mpg for the CTS but still give about the same hp as the current non-DI 3.6L, so win-win.
* Chevrolet posts growth in emerging markets, sales up 3 percent outside North America
* Cadillac sales outside North America up 16.3 percent
DETROIT – Record-setting sales performance in GM’s Latin America, Africa and Middle East and Asia Pacific regions during the third quarter of 2008 helped General Motors sell more than 2.1 million vehicles globally during the third quarter 2008. Compared with the third quarter of 2007, GM’s total sales were down 11.4 percent, reflecting continuing economic pressures in the U.S. market, which pushed North America sales down 18.9 percent, and growing pressure in Europe, where sales were down 12.3 percent. Sales of 1.286 million vehicles outside the U.S. accounted for nearly 61 percent of GM’s total global sales volume compared with just over 56 percent a year ago.
GM sold 6.7 million vehicles in the first nine months of 2008. Sales outside of North America grew by 164,000 vehicles during the same period. On a year-over-year basis, GM total global sales were down 5.8 percent for the first nine months of 2008, again, largely reflecting the economic pressures of the U.S. and Western European markets.
GM Continues Growth in Emerging Markets
“The recent challenges in the global financial markets, including credit tightening and the drop in commodity prices, have negatively impacted market demand. However, our sales performance shows that we are continuing to take advantage of new emerging market opportunities and are meeting customer needs with fuel-efficient products that offer compelling design and great value,” Jonathan Browning, vice president, global sales, service and marketing, said today.
“Our sales performance during the third quarter saw increases by Chevrolet outside North America and Wuling and GM Daewoo regionally,” Browning added.
Chevrolet sales in Asia Pacific, the industry’s second-largest region, grew 5.3 percent compared with the third quarter a year ago. Chevrolet sales in China (up 4.3 percent) and India (up 4.9 percent) powered much of this growth. The Wuling brand continued strong growth in China with sales up 21.9 percent in the third quarter compared to the same period a year ago.
In the Latin America, Africa and Middle East region – a traditional Chevrolet stronghold – sales grew 3.4 percent compared with the third quarter 2007. Chevrolet accounted for 90 percent of GM’s third quarter sales in the region.
Chevrolet sales in Europe also contributed to the brand’s solid third-quarter results, growing 2.7 percent. Chevrolet is seeing strong growth in emerging markets including Eastern Europe. Chevrolet was up 6.2 percent for the first nine months of the year in Russia. In addition, Opel sales in Russia increased by 39 percent, while Saab increased 90.4 percent.
Chevrolet sales in North America were down 16.6 percent; however, GM added production capacity to satisfy the strong demand for the all-new Malibu sedan.
Sales of Cadillac outside of the United States grew 10.7 percent in the third quarter, supported by strong growth of the brand in Latin America, Africa and Middle East (up 10 percent) and Asia Pacific (up 39.2 percent). Cadillac sales in Europe were down 9.3 percent. In North America, Cadillac sales declined about 28 percent, largely reflecting the negative impact of the financing environment in the luxury vehicle market.
Gas Prices Spike — Truck / SUV market dies
Automobile manufacturers were already struggling earlier in the summer when oil prices peaked and automotive sales plummeted. A sudden 30% decrease in sales due to market conditions will do that to even the best run of businesses.
Should Auto Makers have foreseen it? In this case, we now see that oil prices were artificially spiking due to a number of different influences, including massive speculation. Instead of the last drops of oil in the world being pumped out to feed hungry SUVs, as the Enviro-fanatics would have had you believe, we had normal greedy oil producers spiking prices. With the reduced demand brought on by the financial meltdown, oil prices have bottomed out, and the oil producers are starting to panic.
I’ll trade my SUV for Anything with higher MPG
An exceptional uptrend during the oil crisis but before the financial meltdown was people fleeing large SUVs and low mpg cars to buy economy cars and gas-sipping hybrids. In those cases demand may still be ahead of artificially limited supply. New models like the Chevrolet Cobalt XFE are great examples of cars the are focused on getting every MPG possible but that are still very inexpensive. Inexpensive matters when you are building a case for buying a car in order to save gas, since otherwise you spend all your gas savings on the price of the car! A Cobalt XFE at $16,330 can be as much as US$10K less than a Toyota Prius Touring model at $27K for example depending on options. That difference can pay for a lot of gas.
Financial Meltdown — Consumers hold off on vehicle purchases
With the financial meltdown, Consumer demand for big ticket items (like new cars and trucks) is in free fall. Meanwhile, credit availability is restricted somewhat; it is difficult to tell to what degree. Yes, GMAC has said THEY are only lending money to people with a credit score above 700, but other banks and credit sources do not have as much exposure to the meltdown as GMAC does. But making it difficult for people to buy things they were already reluctant to purchase due to financial market uncertainty does not help.
Keep Driving it Forever — Uptick in Maintenance and Repairs, and Used Car Prices?
People are foregoing new cars and other large purchases for now, and continuing to drive their current vehicles. What effect will that have on the markets? Greater need for car maintenance and repairs. Late model used cars for sale may become less plentiful as people continue to drive their cars, which will tend to move used car prices upward.
Lower New Vehicle Transaction Prices will have depressive effect on used car prices?
All the automotive manufacturers are shutting down production in an attempt to match flagging demand. We should still expect to see incentives and ‘sales’ to try to bring in customers. Generally, lower transaction prices in new cars tends to also lower used car pricing. Why pay almost the same for a 3 year old model as I can buy a brand new car for? So we have off-setting trends — used car values tending to push up as more people drive their cars longer and fewer sell them and get new cars tends to drive used car prices up. Lowering demand and transaction prices for new cars tends to drive used car prices down.
Conclusion
What will happen? I think serviceable used cars, especially economy models, will continue to hold their value strongly. Models which have tended historically to have higher depreciation rates already will see worse depreciation and even lower used car values going forward.