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GM Posts Sales Gains, Claims Market Share, Car Sales Dive


Gorehamj

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John Goreham

Contributing Writer, GM-Trucks.com

9/1/2015

General Motors again was one of the first car-makers to announce its August results. In a press release the automaker claims it gained a full percentage of the U.S. retail market share in August. This despite terrible car sales in the month. First the bad news. Here are some of the car sales for August compared to last August:

Cadillac ATS -12.7 (down 12.7%)

Cadillac CTS - 33.3

Cadillac XTS - 48.6

Buick Regal - 23,2

Verano - 48.4

Chevy Camaro - 23.2

Cruze -37.4

Sonic -63.5

Volt - 45

Malibu was up 7.4%

 

GM has had an amazing month due only to crossovers and trucks. As we have reported previously, GM is very quickly exiting the car business in North America. GM's trucks like the Silverado and Sierra had single digit gains in the month. The Colorado and Canyon have leveled off now at their 10K per month maximum. We'd like to take GM's side and report all the great statistics that the company is touting, such as:

"Truck Sales up For 16th Consecutive Month"

"Buick Crossover Sales Up 28%"

"Cadillac SRX (crossover) Up 52%"

However, the real news to our eyes seems to be the very real possibility that GM cars are becoming irrelevant in the U.S. market. They have legions of fans, get great reviews, and don't sell.

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GM will need to make gains in several areas before their car sales will help the bottom line. From my opinion its multi-faceted:

 

  1. Cadillac - cars now have the driving characteristics and quality to support their goals, but the dealership experience in most markets won't attract the buyers. Most buyers shopping Lexus, Mercedes, or BMW have come to expect things the average Cadillac dealer does not personify when they sell the Sonic and Cruze from the same showroom. Until this hurdle is overcome, they need to have a price advantage and their prices keep rising instead. The CTS has been a great car for Cadillac in the past 6-8 years, but the new prices further push the CTS loyalists out of the showroom.
  2. Buick cars have no real foothold in the U.S. for any particular demographic. Who are they trying to sell to here? If I'm confused, so is the average consumer. They are right its not my grandma's Buick, but I don't see many 30-somethings driving them either...
  3. Chevy's cars, outside of the Camaro, are so generic. The Malibu and Impala seem created for a vanilla rental car fleet. They might be nice vehicles, but what makes anyone want one? If you aren't a GM-loyalist, no one is even shopping them...

Don't get me wrong - several GM cars are nice vehicles and I'd consider one. But that's with my employee pricing, lots of negotiation, and because I personally like to support GM. Otherwise the Nissan, Mazda, and even Hyundai offerings have lots of appeal.

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The secondary issue, coupled to what I wrote above about GM in particular, is that the shift to SUV, CUV platforms is impacting cars sales for everyone. So many drivers want the higher seating position, what they perceive as better visibility and safety (arguable) and that step up into the vehicle. These are just some of the factors that are taking traditional cars out of favor. Even with Honda for example, I think the new HRV will eventually outsell the Civic in the U.S. Its a tall-hatch and no one wants to call anything a wagon, but its what buyers want.

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GM has always been blah until recently with their new cars and trucks. 80's ergonomics with bland interior. Even the Corvette up till the 14 model was hideous inside but beautiful outside. Price point as well which are usually more than the imports on the lower end models. This is why most people dont buy them other than the old folks that just want a car and nothing more. I thought I was at a retirement home when I went to the Buick/GMC service department where I purchased my truck from. Hate to say it but its true.

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