[FenwickHockey65]

GM U.S. Sales Increase 5 percent in October
Retail sales up 7 percent, fleet down 2 percent
General Motors

November 1, 2012

DETROIT – General Motors Co. (NYSE: GM) today reported its highest October sales in the United States since 2007, with deliveries up 5 percent versus a year ago to 195,764 vehicles. Year-over-year sales to retail customers were up 7 percent and sales to fleet customers were down 2 percent.

“GM had a solid October in a month that was marked by a devastating national tragedy,” said Kurt McNeil, vice president, U.S. sales operations. “All of us at GM are deeply saddened by the loss of life and the extensive damage caused by the storms, but we’re really encouraged by the national and local response, which will speed the recovery.”

GM’s new cars had a standout performance in October.

“With new designs like the Chevrolet Spark, Buick Verano and Cadillac ATS, and a growing reputation for quality and good resale value, we are becoming an even more formidable competitor in every segment – not just traditional GM strongholds like trucks,” McNeil said.

Sales of GM passenger cars increased 15 percent in October compared with a year ago. Crossovers were up 3 percent and sales of full-size pickup trucks were up 8 percent.

· Passenger car sales were driven by a 37 percent increase in Cadillac car sales, a 27 percent increase in Buick car sales and a 12 percent increase in Chevrolet car sales.

· Combined sales of mini, small and compact cars were up 72 percent compared with a year ago, driven by strong Spark and Sonic sales and a 34 percent increase in Cruze sales. Chevrolet dealers also delivered a record 2,961 Volts.

· Crossover sales were driven by double-digit increases for the Cadillac SRX, GMC Acadia and GMC Terrain.

· Overall truck sales were down 2 percent, reflecting lower sales of the GMC and Chevrolet mid-size pickups, which have been discontinued, and large SUVs.

“Year over year, the light vehicle selling rate has increased for eight consecutive quarters without a tailwind from the residential housing sector, but that is starting to change,” said McNeil. “If these trends continue, housing may be the final piece of the puzzle that lifts sales above 15 million units on an annual basis just as GM prepares to launch even more new cars, crossovers and trucks.”

GM will replace 70 percent of its U.S. nameplates with redesigned or all-new vehicles over the course of 2012 - 2013. In anticipation of robust demand, GM has increased its year-end inventory target from the 650,000-unit range to 660,000 to 670,000 units. This change reflects higher planned stocks of new passenger cars. The truck inventory target is unchanged.

[mlee]

Very Nice...

[Berean]

Sales may be up but 3Q profits are down 14%. Sounds like GM is back to it's old sales model of hefty incentives to get people to buy.

[mlee]

Originally Posted by Berean

Sales may be up but 3Q profits are down 14%. Sounds like GM is back to it's old sales model of hefty incentives to get people to buy.

Last year profits were 1.7B, this year 1.5B = 12% not 14, exceeding market expectations.

[FenwickHockey65]

Incentives aren't really any different than where they've been as far as I know. Honda boosted incentives a ton to get rid of 2012 Civics.

[DGthe3]

Originally Posted by FenwickHockey65

Incentives aren't really any different than where they've been as far as I know. Honda boosted incentives a ton to get rid of 2012 Civics.

Because, and this is what Honda told their dealers, once the 2013s arrive they're going to have a very hard time selling the 2012s



As for incentives vs profits ...

The thing to remember with incentives is that while it does lower the profit margin, it also boosts sales. If higher sales x lower margins is more than lower sales x higher margins, increased incentive spending leads to an increase in profits -not a decrease.

[FenwickHockey65]

The 2013 honestly doesn't look much better than the 2012 model.