In recent interviews with Automotive News [sub] and AutoObserver, GM’s recently-hired marketing boss Joel Ewanick dished out some of the insights that have earned him the reputation for being an ace image guy. He tells AN [sub] that
Consumers don’t buy General Motors. General Motors sells nothing
Oh, really? Because GM decided to remove the GM Mark of Excellence from its vehicles right around the time it emerged from bankruptcy, the better part of a year before Ewanick was brought on board. Since the first Government Motors joke emerged on the internet, GM has sought to distance itself from its corporate umbrella’s brand… and this is the insight Ewanick is bringing to the organization? Hell, Automotive News [sub] suggested that “Stop mentioning General Motors” when he was hired in June of this year. Which leaves Ewanick only one choice: don’t talk about General Motors more than anyone might imagine.
Sales of GM’s four “core brands” were up 36 percent last month [release here], however that number is compared to June 2009 sales, when GM was in bankruptcy. Even against this backdrop, however, GM’s sales show some signs of continued weakness. Though Chevrolet gained 32 percent in overall, its retail sales improved a mere 11 percent, meaning a huge number of Chevy’s sales went to fleets. Out of Buick’s 53 percent volume gain, retail sales increased only 28 percent. Cadillac had much less of a fleet problem than Buick and Chevy, increasing sales 339 percent and retail sales 35 percent. GMC did not release retail numbers for GMC, but noted that GM’s overall fleet sales were 59,571 for the month. That means nearly one in three vehicles sold by GM last month went to a fleet, a percentage that accounts for the lion’s share of GM’s sales growth. Once again, Detroit seems addicted to fleet sales…
GM has been showing off all kinds of future product at its day-long “Global Business Conference,” as it drums up support for its upcoming IPO. Sadly TTAC was not invited, but a wealth of exciting news is percolating through the autoblogosphere. Like this item: Compact MPVs are a big deal.
Considering the Suburban so essentially captures the tenuous line between myth and reality in American life, it’s a pity we don’t have 75 years of sales data to put some hard numbers behind the nameplate’s 75 years of history. Luckily, our data does go back to 1995, when America’s whirlwind romance with the SUV was just beginning to get serious. Given that, as Paul points out in today’s history, Suburbans didn’t become popular as family haulers until sometime in the early eighties, it’s safe to assume that 1996-2004 represents the absolute high-water mark for the nameplate’s volume. And ye gods has that volume dropped off ever since.
For yet another month, GM’s sales [full April sales report in XLS format here, press release here] managed to be both promising and disappointing, depending on how you cut them. GM’s “core brands” were up 20 percent cumulatively, with Cadillac and Buick leading the way with 35.7 percent and 36.4 percent increases respectively (Chevy up 17.4 percent, GMC up 18.4 percent). And though GM is especially eager to boost sales numbers at its two premium brands, thanks to their low baseline sales, the solid percentage gains resulted in surprisingly small volume improvements. The General’s overall volume was up only 6.5 percent compared to April 2009, a month when the just-canceled Pontiac outsold both Buick and Caddy.
With the industry locked in the first incentive war of 2010, analysts have been predicting big sales numbers for March (especially in comparison with March 2009’s weak sales), and GM did not disappoint [sales spreadsheet available here in XLS format]. The General got big numbers out of its newest models [press release here], with the Buick LaCross selling over 6k units, the Cadillac SRX topping 4k, Camaro coming up just shy of 9k units and Equinox moving 12,805. By brand, Buick improved its sales by nearly 76 percent over February 2009, Cadillac bucked its underperformance, ending up 41.8 percent, Chevy added 40 percent and GMC was up 45 percent.
With rumors of another GM executive shakeup flying thick and fast, we expected a downright miserable sales performance from The General in February. By the year-over-year numbers [full release here, sales numbers in PDF format here], there’s no such flow of red tape, as GM’s four “core brands” gained 32 percent and total sales (including Hummer, Pontiac, Saab and Saturn) were up 11.5 percent. But that’s in comparison to February of 2009, when GM’s sales were down 53 percent from the year earlier. In short, GM appears to have hit bottom in terms of volume, but it still has yet to recover to anything close to 2008 volume. (Read More…)
Corporate fleet sales were back with a vengeance last month, as GM admitted that these lower-profit fleet sales made up a full 29 percent of its total sales in January. Those total sales, including the winding-down Pontiac, Saturn, Saab and HUMMER brands were up only 13.6 percent. Core brand sales were up 30 percent in total, but again, most of those gains were in fleet sales, as core brand retail sales gained only 3 percent over GM’s moribund performance in January 2009. Zoinks! Full release in PDF format here, details after the jump.
Grand news for owners of 1999 model year and later Pontiacs! Buick-GMC GM Brian Sweeney tells Automotive News [sub] that “one of our most important tasks is keeping [Pontiac owners] in the database and keeping them as service customers until such a time that the Buick portfolio has developed fully.” The plan: send owners of 1999 model-year and later Pontiacs coupons for free tire rotations and oil changes. GM sales boss Susan Docherty has spoken about the importance of these “free agents,” or GM buyers orphaned by the cutting of their brands. As well she should: it’s more cost effective for any business to keep existing buyers than win over new ones. But is it free oil change easy? If GM thinks it can make Buick believers out of the jilted Pontiac faithful, what does it say about the cynicism with which it approaches branding? Once again, GM’s need to build lost Pontiac volume for the Buick-GMC dealer net leads to the willful suspension of common sense.
It’s been a widely-shared opinion among TTAC’s writers for some time that GM should have used its bailout and bankruptcy to cuts its brand portfolio to Chevrolet and Cadillac. We’ve already sussed out the negative side effects of trying to hold onto the Buick-GMC dealer net, the biggest of which is that without Pontiac, Buick is being forced into volume-chasing. With the debut of the Granite “Urban Utility Concept,” we’re seeing the same brand-diluting volume-hunting taking place at the “Professional Grade” brand. GM’s attempt to bring more youth and volume to its GMC brand is starting with a Youtube-heavy, family-oriented marketing campaign, pointing the way for the brand to betray its “Professional Grade” raison d’etre. But GM’s marketing plan for the Gamma (Aveo)-based Granite will be the final nail in the brand’s coffin. Because to save the brand, GM must destroy the brand.
According to our data, the full-size pickup segment declined by 29.4 percent last year. Of all full-sized pickups, the Chevy Silverado lost the most volume, dropping 32 percent and an eye-popping 148,521 units compared to 2008. GMC Sierra dropped 33.6 percent, or about 56k units. Overall, GM shed half a million pickup sales last year, as its total truck sales fell to 1.2 million. When you’re losing that kind of volume in a shrinking segment, you know it’s time for a hold-em-or-fold-em moment. According to the Detroit News, GM is doubling down on its full-sized truck ambitions, allocating “several hundred million” of your tax dollars towards a re-working of the GMT 900-based trucks.
Speaking to Bloomberg yesterday, GM Sales Boss Susan Docherty called December’s sales results “very encouraging.” Her argument: heavy fleet sales in December 2008 explain why December 09 results look worse by comparison. But spinning sales results as the product of conscious fleet percentage reductions is just one longstanding GM tradition that Docherty indulged in: talking points touting falling incentives and improved inventory weren’t far behind. None of which is necessarily indicative of a satisfactory performance. In fact, if you dissect the spin, it’s clear that what lies beneath is not nearly as attractive as the PR would have you believe.
GM’s December sales release shows a scenario that is reflected across the industry: hefty sales declines on the year with some evening out in December. GM’s sales fell six percent last month, the result of a 54 percent decline in “non-core” brands and a 2.2 percent increase in core brand sales. Still, considering December 08 sales were down nearly by half compared to 2007, it’s clear that GM still has some climbing to do to return to something resembling normalcy. Of the four core brands, the three smaller saw modest gains, with Buick climbing 37 percent, Cadillac gaining 11.4 percent and GMC improving 4.8 percent. But those gains were offset by a 1.5 percent decline in Chevy sales. For the year, Buick dropped 25.4 percent to 102,306 units, Cadillac fell 32.3 percent to 109,092 units, GMC fell 31.1 percent to 259,779 and Chevrolet dropped 25 percent to 1,344,629 units. [Complete GM sales data in XLS (Excel) form available for download here]
You’d have to be a fairly trusting GM dealer to participate in what The General calls its Essential Brand Elements program. After all, it’s just the kind of dealership re-branding exercise that HUMMER dealers were forced into shortly before the brand was consigned to the ash heap of history. And once again, GM is asking dealers to create ideal showcases for its brands while keeping compensation for the renovations on a highly trust-dependent basis. GM wants brand-specific dealership rebrandings complete within three years, but will only pay for them over the next five to ten years reports Automotive News [sub]. And the payments won’t be fixed either, but will rather be tied to the dealer’s annual vehicle shipments using “a seasonally adjusted formula that takes into account the price of the vehicles sold.” According to Chevy’s Sales Manager Kurt McNeil, those payments could “conceivably” cover the recommended changes over the ten-year period. Are you feeling the trust yet? (Read More…)
GM announced today that Buick-GMC sales manager Brian Sweeney has been promoted to the top spot at Buick-GMC after his predecessor Michael Richards left the position after nine days on the job. According to the Detroit News, Sweeney began his GM career at GMC in 1990 and has served as vice president of sales at Saab Cars USA and sales manager of GM’s north-central region.
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