GM Reports 21.9% Adjusted Decline In August Car Sales, Estimate At -19%, Just In Time For IPO
GM sold a total of 185,176 cars in August, a decline of 24.9% from the 246,479 from August of last year (although, there were 26 selling days last year, compared to 25 this year, ergo the adjusted 21.9% decline). Also, dealer inventory jumps in sign nobody wants to buy a government car yet. We sure wonder where CNBC gets their "better than expected" numbers: if, unless, it is the totally fudged and massaged number that GM would like the public to believe is indicative of anything more than just fleet purchases of 4 "core" brands.
Full release below: we hope Phil Lebow can highlight the part that he thinks is so good for US consumers, and future GM IPO participants.
DETROIT, Sept. 1 /PRNewswire/ --
August sales for Chevrolet, Buick, GMC and Cadillac decreased by a combined 11 percent to 184,921 units, compared to last August, a month in which the automotive industry experienced the highest level of sales in 2009 due to the Cash for Clunkers stimulus program. Compared to July 2010, sales for GM's brands were down 7 percent.
Through August, Buick remained the industry's fastest growing brand with sales up 61 percent year-to-date. Cadillac leads the luxury vehicle industry in sales growth this year, with sales 50 percent higher through August.
"Last year's Cash for Clunkers program spiked industry sales in 2009, so results this August were not surprisingly a bit mixed," said Don Johnson, vice president, U.S. Sales Operations. "Importantly, three of our four divisions showed solid gains. This is further evidence that our performance is the result of balanced contributions across our brands."
Combined sales for Buick, GMC and Cadillac were up 37 percent for the month, compared to a year ago. Buick sales increased 66 percent, propelled by retail sales that more than doubled during the month. Cadillac dealers reported sales that were 83 percent higher than last year, and the brand's retail sales also rose 83 percent. GMC total sales were up 12 percent during the month, driven by strong retail sales. Chevrolet, which benefited the most from last year's federal stimulus, had a total sales decline of 22 percent compared to last year, while retail sales were down 31 percent.
Total sales of GM's full-size pickups rose 4 percent during the month, while its full-size utilities increased 7 percent on strong retail sales growth.
Johnson noted that key product launches for the remainder of this year will continue the company's momentum. "With the all-new Chevrolet Cruze hitting showrooms in September, the Chevrolet Volt later this year, the Buick Regal expanding Buick's footprint in the U.S., and the Cadillac CTS Coupe generating a lot of attention, we have reason to be optimistic," Johnson said.
Month-end dealer inventory in the U.S. stood at about 452,000 units, which is about 28,000 higher compared to July 2010, and about 73,000 higher than August 2009.
August Key Facts and Brand Results:
Chevrolet: Chevrolet delivered 131,952 total vehicles in August, a 22 percent decline year-over-year. Year-to-date total Chevrolet sales are up 19 percent. Retail sales for Chevrolet full-size trucks (Silverado, Avalanche, Tahoe and Suburban) rose 8 percent. ( read more ).
Buick: Buick reported total sales of 14,294, an increase of 66 percent in August compared to last year. Driven by continuing strong customer demand for the LaCrosse (retail sales up 263 percent) and growing demand for the all-new Regal, Buick retail sales more than doubled for the second month a row, up 102 percent, compared to last year. August was the eleventh straight month that total and retail sales have increased. With sales up 61 percent for the year, Buick remains the fastest growing major auto brand in the U.S. ( read more ).
GMC: GMC reported total sales of 25,986, a 12 percent increase in total sales in the month of August, compared to the same month last year. This includes an 18 percent increase in retail sales, marking 11 consecutive months of year-over-year total and retail sales gains for GMC. Retail sales for GMC full-size trucks (Sierra, Yukon and Yukon XL) increased 12 percent during the month and retail sales for the Terrain rose to 3,667 units. For the year, GMC total sales are up 26 percent ( read more ).
Cadillac: Total sales of 12,689 for August were 83 percent higher than last August, with retail sales increasing 83 percent. This strong retail performance was driven by continuing strong consumer demand for the SRX and the CTS, with retail sales up 410 percent and 77 percent, respectively. August was the seventh month in a row that Cadillac total and retail sales have increased. With total sales up 50 percent for the year, the brand is the fastest growing luxury auto brand in the industry (read more ).
Fleet sales for GM's four brands were 51,951 for the month.