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GM February sales down 1%


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DETROIT – General Motors Co. (NYSE: GM) dealers delivered 222,104 vehicles in the United States in February 2014. Total sales were down 1 percent compared with a year ago, beating outside expectations. Retail and fleet sales were both down 1 percent. GM increased its sales from January 2014 by 30 percent, more than 10 percentage points better than the industry as a whole.

“Weather continued to impact the industry in February, but GM sales started to thaw during the Winter Olympic Games as our brand and marketing messages took hold,” said Kurt McNeil, U.S. vice president of Sales Operations. “Car and crossover sales were particularly strong at Buick and Chevrolet, and we continue to have a strong mix of pickup sales.

“Despite a slower start to 2014 than most people expected, we look forward to a very successful year, backed by plenty of new products and what should be the strongest GDP growth since the end of the recession.”

February Sales Highlights (vs. 2013)

  • Passenger car sales were up 8 percent, with Buick deliveries up across the board.
  • The Chevrolet Sonic, Cruze and Malibu posted double-digit sales increases.
  • The Chevrolet Cruze and the Buick Verano had their best February sales ever.
  • Deliveries of the Corvette were up 149 percent.
  • The all-new 2014 Cadillac CTS sedan helped drive a 7 percent increase in retail sales for the CTS range. Segment share is estimated to be up 1.6 points.
  • Crossover sales were up 4 percent. Sales of the Buick Encore nearly doubled, the Cadillac SRX was up 23 percent and GMC Acadia deliveries were up 2 percent. The Buick Enclave and Chevrolet Equinox had their best February sales ever.
  • Retail deliveries of Chevrolet and GMC large SUVs were up 14 percent.
  • GM’s retail share of light-duty pickup sales increased an estimated 2 percentage points or more from January 2014.
  • The mix of light duty pickups powered by GM’s all-new EcoTec3 V6, which offers best-in-class fuel economy, towing and payload (depending on configuration) increased 2 percentage points month over month to about 20 percent of retail sales.
  • The average transaction prices for GM’s full-size pickups were in line with January 2014 levels, according to mid-month J.D. Power PIN estimates. More than half of light-duty pickup sales continue to be premium-contented models.
  • Incentive spending increased slightly month over month on both an absolute basis and as a percentage of average transaction prices due primarily to the sell-down of older model heavy-duty pickups and large SUVs. GM’s increase was less than the industry average, according to J.D. Power PIN.
  • GM increased its commercial fleet sales for the fourth month in a row, with deliveries up more than 1 percent; commercial deliveries are up 8 percent year to date.

 

 

http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2014/mar/gmsales.html

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ATS is WAY down while CTS was essentially flat. Current sales rate for both combined is around 60K. The old CTS by itself was selling around 50K.

On another website, a Cadillac dealer claims that prospective buyers are balking at the higher prices. According to him, current CTS owners don't want to pay higher prices for the new model. I'm guessing that if they are shown the ATS as a substitute, they will reject it because the interior is too small. I've sat in the ATS at the Harrisburg and Washington, D.C., auto shows was surprised at how cramped the back seat is. The seat cushion also feels skimpy...it's very close to the floor, and there isn't much padding.

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On another website, a Cadillac dealer claims that prospective buyers are balking at the higher prices. According to him, current CTS owners don't want to pay higher prices for the new model. I'm guessing that if they are shown the ATS as a substitute, they will reject it because the interior is too small. I've sat in the ATS at the Harrisburg and Washington, D.C., auto shows was surprised at how cramped the back seat is. The seat cushion also feels skimpy...it's very close to the floor, and there isn't much padding.

I'm sure they'll pull the usual GM solution out of the bag soon. Rebates!

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But hey - we're competing with BMW!!!!!

Buyers who want a performance-oriented, rear-wheel-drive sedan and are willing to put up with a cramped back seat are already buying BMWs.

 

Two of the attributes people associate with the Cadillac name are ROOM and plushness. Cadillac is walking away from its old-school virtues. The only problem is that buyers who want what Cadillac is now offering have long been able to get it in a nameplate that offers more prestige.

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Buyers who want a performance-oriented, rear-wheel-drive sedan and are willing to put up with a cramped back seat are already buying BMWs.

 

Two of the attributes people associate with the Cadillac name are ROOM and plushness. Cadillac is walking away from its old-school virtues. The only problem is that buyers who want what Cadillac is now offering have long been able to get it in a nameplate that offers more prestige.

 

Honestly, I don't think Cadillac really cares about sales and profits right now. All they seem to care about is winning magazine comparos and getting enthusiast kudos and street cred. It reminds me of teenagers being left alone while the parents are out of town. Eventually the parents will come back home, look at the balance sheet and realize that they're not making money and make major changes.

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Honestly, I don't think Cadillac really cares about sales and profits right now. All they seem to care about is winning magazine comparos and getting enthusiast kudos and street cred. It reminds me of teenagers being left alone while the parents are out of town. Eventually the parents will come back home, look at the balance sheet and realize that they're not making money and make major changes.

No doubt Cadillac is chasing "buzz" on the street, most likely with the belief that the "buzz" will soon result in real profits.

 

The problem with this approach is twofold. Regarding the "buzz," the buff books are praising the chassis tuning of the ATS and CTS while saying that virtually everything else is still better on the BMWs and Benzes.

 

There is always the risk that a new regime will come in, take a hard look at the numbers, and start demanding real profits immediately. Cadillac will have abandoned its old market without successfully appealing to the new one. The new management will question "staying the course," but any attempt to reverse course will only confuse the customers.

 

The second problem is a real one. The "old" GM was notorious for launching a grand initiative and then either making a half-hearted effort or abandoning it before making any real headway. I'm not so sure that the "new" GM has had enough of a culture change to avoid this problem.

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GM has spent a lot more on ATS & CTS than Lincoln spent on MKZ and yes the twins are out selling MKZ but at what cost?

When you chase things other than profit (sales - image) the objectives of the original business plan are lost in obscurity...

 

Did GM simply split sales for what would have been the replacement for the Sigma CTS, Could one affordable vehicle do the job?

Edited by jpd80
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There is always the risk that a new regime will come in, take a hard look at the numbers, and start demanding real profits immediately. Cadillac will have abandoned its old market without successfully appealing to the new one. The new management will question "staying the course," but any attempt to reverse course will only confuse the customers.

 

The second problem is a real one. The "old" GM was notorious for launching a grand initiative and then either making a half-hearted effort or abandoning it before making any real headway. I'm not so sure that the "new" GM has had enough of a culture change to avoid this problem.

Is there even a "new" GM, or is it really just "old" GM in "new" GM clothes?

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I have to say, I couldn't care less about the backseat in pretty much any car because I don't intend on spending any time in it. And I have to admit, the ATS is actually on my list for my next car. The prices for used 13s and 14s are pretty damn favorable. (GM's and their buyers' loss would be my gain). But I admit I've not sat in or driven the car and am certainly not committed. But honestly, the exterior is really more appealing to me than the MKZ and the level of equipment in the commonly appointed models is high. Plus, a 3.6L in AWD gets my attention.

 

That said, I could never see buying an ATS new. The pricing, incentives or not, is pretty insane. A reasonably equipped model quickly explodes into the mid-40's.

 

Right now, my next vehicle is either: A 3.6L AWD ATS, a Jeep Grand Cherokee Limited or a new Fusion Titanium. I've tried, sincerely, to get excited about the MKZ. I just can't do it. The MKC, used, is a very close 4th. I DO like the MKC a lot.

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I have to say, I couldn't care less about the backseat in pretty much any car because I don't intend on spending any time in it. And I have to admit, the ATS is actually on my list for my next car. The prices for used 13s and 14s are pretty damn favorable. (GM's and their buyers' loss would be my gain). But I admit I've not sat in or driven the car and am certainly not committed. But honestly, the exterior is really more appealing to me than the MKZ and the level of equipment in the commonly appointed models is high. Plus, a 3.6L in AWD gets my attention.

 

That said, I could never see buying an ATS new. The pricing, incentives or not, is pretty insane. A reasonably equipped model quickly explodes into the mid-40's.

 

Right now, my next vehicle is either: A 3.6L AWD ATS, a Jeep Grand Cherokee Limited or a new Fusion Titanium. I've tried, sincerely, to get excited about the MKZ. I just can't do it. The MKC, used, is a very close 4th. I DO like the MKC a lot.

There's not too many AWD 3.6s around, so I doubt you'll get anything under about $35K, - there's a lot more 2.0 Turbos out there...

Edited by jpd80
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Buyers who want a performance-oriented, rear-wheel-drive sedan and are willing to put up with a cramped back seat are already buying BMWs.

 

Two of the attributes people associate with the Cadillac name are ROOM and plushness. Cadillac is walking away from its old-school virtues. The only problem is that buyers who want what Cadillac is now offering have long been able to get it in a nameplate that offers more prestige.

The "plush and roomy" XTS and Escalade lost sales too, GM isnt pulling the plug on those either. Also the Alpha platform is GM mid-size rwd car program thats the next Camaro is at least on.

 

In the end GM will sell more rwd cars then BMW thats not under a Caddy badge anyways.

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I have to say, I couldn't care less about the backseat in pretty much any car because I don't intend on spending any time in it. And I have to admit, the ATS is actually on my list for my next car. The prices for used 13s and 14s are pretty damn favorable. (GM's and their buyers' loss would be my gain). But I admit I've not sat in or driven the car and am certainly not committed. But honestly, the exterior is really more appealing to me than the MKZ and the level of equipment in the commonly appointed models is high. Plus, a 3.6L in AWD gets my attention.

 

That said, I could never see buying an ATS new. The pricing, incentives or not, is pretty insane. A reasonably equipped model quickly explodes into the mid-40's.

 

Right now, my next vehicle is either: A 3.6L AWD ATS, a Jeep Grand Cherokee Limited or a new Fusion Titanium. I've tried, sincerely, to get excited about the MKZ. I just can't do it. The MKC, used, is a very close 4th. I DO like the MKC a lot.

The ATSs I've seen are pretty pricey, but then BMWs quickly escalate in price when you begin adding optional equipment.

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The "plush and roomy" XTS and Escalade lost sales too, GM isnt pulling the plug on those either. Also the Alpha platform is GM mid-size rwd car program thats the next Camaro is at least on.

 

In the end GM will sell more rwd cars then BMW thats not under a Caddy badge anyways.

The current Escalade is at the end of its life cycle, and I'll bet that most buyers know this. Cadillac had the new Escalade on display at the Washington, D.C., auto show.

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"ATS is WAY down while CTS was essentially flat. Current sales rate for both combined is around 60K. The old CTS by itself was selling around 50K."

 

But according to "experts", these 'Euro Inspired' RWD cars were supposed to "save GM". But then when they are for sale, the excuse is "too much $".

 

Looks like Ford dodged a bullet by not importing Aussie Falcons. Can see them trying to sell with huge rebates, or dumping into fleets. Even more money wasted to please loud minority, who never buy new cars.

 

Edited by 630land
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I believe the long-term strategy of offering the ATS, CTS, and vehicles like them are sound for Cadillac. What isn't sound is the way in which they went about bringing them to market in terms of platform costs. While everyone complains about the way in which Lincoln is being slow to launch new vehicles, they are going about it in a way that aligns the development costs far better with those of its parent brand.

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