Tag Archives: GM

GM sales down, but share of US Market up

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GM Reports 284,300 Deliveries in September; Highest Monthly Market Share of 2008

  • Chevrolet Malibu retail sales up 192 percent; Pontiac Vibe up 61 percent compared with last September
  • Buick Enclave, GMC Acadia and Saturn Outlook crossover total sales up 10 percent; first 226 Chevrolet Traverse sales recorded
  • 72,500 Chevrolet Silverado, Avalanche and GMC Sierra pickups sold; beats industry trend as segment-leading vehicles grab market share
  • GM’s market share estimated at 27 percent, marks second consecutive month of market share gains
  • Total Q3 sales up 4 percent compared with Q2, with market share improving by more than 3 percentage points

DETROIT – General Motors dealers in the United States delivered 284,300 vehicles in September, giving GM its best monthly share so far in 2008. GM’s share improvement was led by continued strong performances in the mid-car, crossover and full size truck segments. The GM Employee Discount for Everyone sale built awareness for the company’s outstanding lineup and offered compelling values to customers. GM’s brands are having divisional sales events this month to keep the marketplace momentum building.

A strong lineup of new products, combined with sales and marketing programs geared toward a particularly challenging market, helped GM outpace major competitors this month. GM total September sales were down 16 percent compared to an industry decline anticipated to exceed 20 percent. Of note, GM total third quarter 2008 sales of 828,000 vehicles were 4 percent higher than second quarter sales of 799,000 vehicles and 3 percent higher than first quarter sales of 806,000.

“September marked the second consecutive month where GM performed extremely well in tough market conditions,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. “We again gained retail share and our total market share looks to be above 27 percent for the month without an increase in incentives.

“In a market where customers are cautious and seeking value, more and more are choosing a fuel efficient, award-winning GM product,” LaNeve added. “Comparing Q3 to Q2, we also saw a lot of positives. Volume was up 4 percent with retail trucks improving 23 percent. Of note were our full-size pickups that jumped 30 percent compared with Q2. Importantly, market share improved more than 3 percentage points quarter-to-quarter.”

GM launch products continued to build momentum in September and throughout the quarter.

“We saw great performance in our launch products – Malibu was up nearly 200 percent – and we’re very excited to have the first deliveries of the Chevrolet Traverse mid-utility crossover,” LaNeve said. “We’re also seeing some renewed demand for pickups and anticipate that our divisional sales programs this month will help fuel the market. Sales of the GMC Sierra were up last month. Our mid-car segment vehicle sales were up 23 percent in September. We saw the Chevrolet HHR gain 14 percent. Pontiac saw gains with the Vibe and G5 while Saturn saw increased sales for the Vue and Outlook. ”

The success of GM’s product lineup, combined with a compelling value offer, helped the company mitigate the industry challenges as total GM car sales declined just 9.8 percent, while trucks (excluding crossovers) declined 22 percent when compared with a year ago.

GM’s popular mid-utility crossovers – Chevrolet Traverse, Buick Enclave, GMC Acadia and Saturn Outlook — together accounted for more than 14,000 vehicle sales in the month. The first new Chevrolet Traverse crossovers were sold in September, marking the start of deliveries for the fourth vehicle in GM’s industry-leading mid-utility crossover lineup.

For the month, a total of 1,957 hybrid vehicles were delivered as GM hybrids continue to gain in popularity in the marketplace. GM’s hybrid sales for September included: 636 hybrid Chevrolet Tahoe, 374 GMC Yukon and 91 Cadillac Escalade

2-mode SUVs delivered. There were 382 Chevrolet Malibu, 31 Saturn Aura and 443 Vue hybrids sold in September. GM has sold 9,053 hybrids so far in 2008.

“Customers are responding to our hybrid vehicles – cutting-edge cars and trucks that provide industry-leading value, great fuel economy and the best warranty coverage of any full-line automaker,” LaNeve noted. “The public reveal of the production version of the Chevrolet Volt E-REV as the highlight of our GMnext celebration last month showcases GM’s leadership in advanced propulsion technology and fuel efficiency.”

With its solid sales performances the past two months, GM has aggressively managed inventories to historically low levels. In September, only about 717,000 vehicles were in stock – the lowest September in a decade – down about 179,000 vehicles (or about 20 percent) compared with last September. There were about 275,000 cars and 442,000 trucks (including crossovers) in inventory at the end of September.

Certified Used Vehicles

September 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 35,341 vehicles, down 13 percent from September 2007. Year-to-date sales are 374,716 vehicles, down 6 percent from the same period last year.

GM Certified Used Vehicles, the industry’s top-selling certified brand, posted September sales of 30,375 vehicles, down 16 percent from September 2007. Saturn Certified Pre-Owned Vehicles sold 817 vehicles, down 7 percent. Cadillac Certified Pre-Owned Vehicles sold 3,269 vehicles, up 8 percent. Saab Certified Pre-Owned Vehicles sold 687 vehicles, up 22 percent, and HUMMER Certified Pre-Owned Vehicles sold 193 vehicles, up 41 percent.

“Our Cadillac, Saab and HUMMER Certified Pre-Owned programs each achieved strong sales increases in September, while GM Certified Used Vehicles again sets the sales pace for all OEM certified pre-owned programs,” said LaNeve. “In September GM Certified Used Vehicles, which includes Chevrolet, Buick, GMC and Pontiac models, sold its 3-millionth vehicle since the program’s launch in 1997, the first manufacturer-certified program in the industry to reach that sales milestone.”

GM North America Reports September, 2008 Production; Third-Quarter Production at 915,000 Vehicles; Fourth Quarter Forecast remains at 875,000 Vehicles

In September, GM North America produced 335,000 vehicles (162,000 cars and 173,000 trucks). This is up 12,000 vehicles or 4 percent compared with September 2007 when the region produced 323,000 vehicles (118,000 cars and 205,000 trucks). (Production totals include joint venture production of 18,000 vehicles in September 2008 and 15,000 vehicles in September 2007.)

The GM North America third-quarter production was 915,000 vehicles (437,000 cars and 478,000 trucks) which was down 10 percent compared with a year ago, due to production adjustments in response to market changes that will reduce the number of trucks produced by about 175,000 and increase the number of cars by about 70,000. GM North America built 1.020 million vehicles (367,000 cars and 653,000 trucks) in the third-quarter of 2007.

The GM North America fourth-quarter production forecast remains at 875,000 vehicles (407,000 cars and 468,000 trucks) which is down about 16 percent compared with a year ago. GM North America built 1.042 million vehicles (358,000 cars and 684,000 trucks) in the fourth-quarter of 2007.

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 266,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. 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.

September

(Calendar Year-to-Date)
January – September

2008

2007

% Chg Volume

%Chg per S/D

2008

2007

%Chg Volume

Selling Days (S/D)

24

25

24

25

Cadillac Cars:

CTS

4,360

6,416

-32.0

-29.2

47,479

38,080

24.7

DeVille

0

0

***.*

***.*

0

71

***.*

DTS

3,381

4,776

-29.2

-26.3

25,790

38,144

-32.4

STS

856

1,612

-46.9

-44.7

12,621

14,768

-14.5

XLR

83

111

-25.2

-22.1

1,039

1,410

-26.3

Cadillac Total

8,680

12,915

-32.8

-30.0

86,929

92,473

-6.0

Cadillac Trucks:

Escalade

1,644

3,505

-53.1

-51.1

17,719

27,278

-35.0

Escalade ESV

906

1,542

-41.2

-38.8

8,543

12,175

-29.8

Escalade EXT

354

781

-54.7

-52.8

3,514

6,134

-42.7

SRX

848

1,655

-48.8

-46.6

12,863

16,922

-24.0

Cadillac Total

3,752

7,483

-49.9

-47.8

42,639

62,509

-31.8

GM’s Rick Wagoner explains Government Technology Investments

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GMBlogs has this video from Rick Wagoner who explains the recent Government decision to make $25B in  loans available to automakers to help develop new technologies:

The Energy Security Bill of 2007 which established the new fuel economy requirements that the Automakers are responding to had built in financial support to assist Automakers in meeting the aggressive new requirements. The funding support passed this weekend is the funding promised by Congress.

Congress approves $25B in loans to US Automakers

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The Congress today passed a Budget Continuing Resolution to keep the US Government running through the end of the Government Fiscal year.

Contained in that resolution, which is now headed to the President for signature, is funding for $25B in loans for US Automakers to help them build more fuel efficient vehicles using new technologies.

Here are the details; sorry for the formatting, this is how the document reads:

Bill:  H.R.2638
Title: Making appropriations for the Department of Homeland Security for the fiscal year ending September 30, 2008, and for other purposes.
Sponsor: Rep Price, David E. [NC-4] (introduced 6/8/2007) Cosponsors (None)
Related Bills: H.RES.473, H.RES.1488

Text relevant to Automakers:

3 SEC. 129. (a) Notwithstanding any other provision
4 of this joint resolution, there IS appropriated
5 $7,510,000,000 for fiscal year 2009 for “Department of
6 Energy-Energy Programs-Advanced Technology Vehi
7 cles IVlanufacturing Loan Program Account” for the cost
8 of direct loans as authorized by section 136(d) of the En
9 ergy Independence and Security Act of 2007 (Public Law
10 110-140; 42 U.S.C. 17013(d)), to remain available until
11 eArpended. Of such amount, $10,000,000 shall be used for
12 administrative expenses in carrying -out the direct loan
13 program. Commitments for direct loans using such
14 amount shall not exceed $25,000;000,000 in total loan
15 principal. The cost of such direct loans, including the cost
16 of modifying such loans, shall be as defined in section 502
17 of the Congressional Budget Act of 1974.

Here is the text of Section 136d of the Energy and Independence Security Act to which the above paragraph refers to section d:

SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.

(a) Definitions- In this section:

(1) ADVANCED TECHNOLOGY VEHICLE- The term `advanced technology vehicle’ means a light duty vehicle that meets–

(A) the Bin 5 Tier II emission standard established in regulations issued by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a lower-numbered Bin emission standard;

(B) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that Act (42 U.S.C. 7401 et seq.); and

(C) at least 125 percent of the average base year combined fuel economy for vehicles with substantially similar attributes.

(2) COMBINED FUEL ECONOMY- The term `combined fuel economy’ means–

(A) the combined city/highway miles per gallon values, as reported in accordance with section 32904 of title 49, United States Code; and

(B) in the case of an electric drive vehicle with the ability to recharge from an off-board source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended practice for that configuration or a similar practice recommended by the Secretary.

(3) ENGINEERING INTEGRATION COSTS- The term `engineering integration costs’ includes the cost of engineering tasks relating to–

(A) incorporating qualifying components into the design of advanced technology vehicles; and

(B) designing tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced technology vehicles.

(4) QUALIFYING COMPONENTS- The term `qualifying components’ means components that the Secretary determines to be–

(A) designed for advanced technology vehicles; and

(B) installed for the purpose of meeting the performance requirements of advanced technology vehicles.

(b) Advanced Vehicles Manufacturing Facility- The Secretary shall provide facility funding awards under this section to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of–

(1) reequipping, expanding, or establishing a manufacturing facility in the United States to produce–

(A) qualifying advanced technology vehicles; or

(B) qualifying components; and

(2) engineering integration performed in the United States of qualifying vehicles and qualifying components.

(c) Period of Availability- An award under subsection (b) shall apply to–

(1) facilities and equipment placed in service before December 30, 2020; and

(2) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.

(d) Direct Loan Program-

(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).

(2) APPLICATION- An applicant for a loan under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a written assurance that–

(A) all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141-3144, 3146, and 3147 of title 40, United States Code; and

(B) the Secretary of Labor shall, with respect to the labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.

(3) SELECTION OF ELIGIBLE PROJECTS- The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient–

(A) is financially viable without the receipt of additional Federal funding associated with the proposed project;

(B) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and

(C) has met such other criteria as may be established and published by the Secretary.

(4) RATES, TERMS, AND REPAYMENT OF LOANS- A loan provided under this subsection–

(A) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;

(B) shall have a term equal to the lesser of–

(i) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and

(ii) 25 years;

(C) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; and

(D) shall be made by the Federal Financing Bank.

(e) Improvement- The Secretary shall issue regulations that require that, in order for an automobile manufacturer to be eligible for an award or loan under this section during a particular year, the adjusted average fuel economy of the manufacturer for light duty vehicles produced by the manufacturer during the most recent year for which data are available shall be not less than the average fuel economy for all light duty vehicles of the manufacturer for model year 2005. In order to determine fuel economy baselines for eligibility of a new manufacturer or a manufacturer that has not produced previously produced equivalent vehicles, the Secretary may substitute industry averages.

(f) Fees- Administrative costs shall be no more than $100,000 or 10 basis point of the loan.

(g) Priority- The Secretary shall, in making awards or loans to those manufacturers that have existing facilities, give priority to those facilities that are oldest or have been in existence for at least 20 years. Such facilities can currently be sitting idle.

(h) Set Aside for Small Automobile Manufacturers and Component Suppliers-

(1) DEFINITION OF COVERED FIRM- In this subsection, the term `covered firm’ means a firm that–

(A) employs less than 500 individuals; and

(B) manufactures automobiles or components of automobiles.

(2) SET ASIDE- Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.

(i) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.