GM Sees Much To Like In Declining Sales

[Gorehamj]

John Goreham
Contributing Writer, GM-Trucks.com
9-2-2016

Not every month is growth month for every auto maker. This month some of the largest brands took a step back, while some smaller ones had their best month ever. Like Toyota, GM had slightly lower sales this August than it did last year. Does this mean all is lost and the end is near. No.

 

Here is a punch list of GM's reasons why it is doing the happy dance, even as sales dip:

-Retail share up 0.5 percentage points
-Average transaction prices up more than $2,500
-Disciplined incentive spending, in line with 2015
-Daily rental deliveries down 34 percent
-Disciplined inventory levels and growing availability of key launch products

 

Just to offer some balance and to include some areas of concern we created this punch list:

- The new Cadillac XT5 crossover is selling way below the SRX it replaces.

- CTS sales continue to go down and ATS is bottomed out at about 1,100 cars per month.

- The Malibu continues to decline in sales, even with its new design.

- Impala sales have declined 42.2% since last August.

- The Camaro has declined in sales despite being an all-new model.

- Both of GM's compact crossovers, Terrain and Equinox, are both down hugely. Every other automaker is selling the heck out of their compact crossovers.

 

From this GM fan's perspective, it looks like GM is only looking at trucks and SUVs when it reviews its sales reports. We've seen this story before. Silverado and Sierra were down a bit in this month compared to last year, and Colorado and Canyon are up to their new production capacities. What are your thoughts on where GM is headed in terms of sales?

 

[newdude]

As much as they want high ATPs, they are over priced compared to what the competition offers at the same price, plus the competition has newer products than GM does in some categories. Equinox and Terrain are old as dirt and very $$$ for the features you get. Traverse/Acadia/Enclave are even older, but they seem to be priced okay...except when you load them up and realize they still share GMT-900 switchgear inside them. Cars is understandable as CUVs are the dominant thing.

 

Higher ATPs is good, but higher ATP on $HIT products with lacking features and what not is stupid.

 

Also, GM lacks the free flow availability of some darn good options. They were excellent at doing this in the past, but now you have to package up $3000 in upgrades, and you really only want like, $600 of the features in the $3000 package.

[Colossus]

GM was doing good for a few years there post 2010- but now I get the feeling the yahoos in Detroit have relaxed a bit too much and are getting to be a bit too greedy again. If they build a good quality product, then the resale values will stay high and who cares how many they sell to the rental fleets. But they are not building a good quality product that is good enough to be proud of right now. I'm very disappointed in GM. They have so much potential to be a top notch leader in the automotive world yet they are too blind to see what is really important or perhaps too proud. Rule number 1- Make the customer happy. How do you make the customer happy? By offering reasonably priced products that will last and not nickle and dime the consumer. Be respectable, be responsible, be.. all that you can be.. in the GM.. reserve.. er.. yeah.

[SnakeEyeSS]

Wow, looks like nearly everyone thought the Caddy moves weren't going to work out well are looking right. I mean, they got the guy who planned all the ideas that sent Infinity on a decline after it had been a rising star for a decade, so who would have guessed? I mean, just because Infinity dealers responded that customers were so confused about the naming change they lost interest in the cars, doesn't mean Caddy would suffer the same fate from the same demographic from the same idea, right?

 

Too bad they didn't rename the Escalade to prove how right he was. Oh wait, someone thought it wasn't worth the risk, so that obviously shows how confident they were in the idea. Too late now, spend more on marketing!

 

And jacking up the price on the Camaro has backfired? No way! Would would have thought making the affordable V8 muscle car cost more than the avg years salary would have an effect?

[barry G]

interesting stuff, reveals a whole country and its changes.

 

my sister turned in her impala/malibu something with the huge v6 for the ford explorer.. twice the size, .3 liters less... even more powerful.

she had that for seeming a long time.

not all that hard to figure out.

the 3.5L anything but a cop car version...going even faster.

 

I opened the door checking things out. the root of the B-pillar had my steel building ventures in awe. Very impressive structure.

the impala bounced like a trampoline in the belly pan.

 

american trucks are hardly anything to the scope of the total GM.

it is just us with the trucks.

 

like a 1% club.. as for as much I had travelled. We are lucky people.

['16Sierra1500]

I remember back in July, GM announced a 20% rebate off select models due to horrible sales in May and low sales in June (http://gmauthority.com/blog/2016/07/chevrolet-offering-20-percent-cash-back-on-nearly-all-2016-vehicles/). I'm currently looking to buy a Sierra and was curious if any of you think that this rebate could pop up again soon due to the lackluster sales and the Airbag/Seatbelt recall that was announced today. There are still old ads on the internet of when these rebates were applied to brand new Sierra's and took $10,300 off the asking price. Can't beat that deal!

[Nargg]

My wife drives a SRX. I can see why the XT5 sales are lower, that SUV just doesn't look as good. It's close, but uglier. Not sure why Cadillac has gone more stark looking in the newest models. They just don't look as strikingly good as before. At this trim/luxury level, the car must look amazingly good. The features are a must, but unless it draws attention, like the SRX did and still does to some point, it ain't gonna sell.

[user1484]

Dropping the 100k mile drivetrain warranty was a mistake and is the main reason I haven't bought a new truck, my current 2014 has more warranty left than a new one would have. I doubt they will admit that it's affecting sales but it is.

[Colossus]

Agreed on how pathetic the new Caddie's are looking. Doesn't help that their reliability ratings have tanked as well over recent years.