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GM Oct Sales

807 Sols for the month, 1,488 for the year. Overall Pontiac isn't looking too bad. Hopefully the 4 cycl G6 can pick the G6 sales to Grand Am level.

Cobalt is a good 10,000 above Cavalier sales. HHR sales are doing pretty good too.
 

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It was a rough month for GM as a whole (as it was for most of the industry, aside from Toyota and Honda).

GM sales for October were down 25.9% from last year :eek: That includes a 33% drop in truck/SUV sales. The Cadillac Escalade was down 49%!

Obviously, many are blaming the sales drop on the "Employee Pricing" campaign over the summer, but those huge losses in truck have to also include people abandoning vehicles that use more gas.

Here is an article on the industry's October sales:
http://www.usatoday.com/money/autos/2005-11-01-october-sales_x.htm

Pontiac sales as a whole are not that healthy either. For the year, they are still down 6.7% compared to last year, and last years sales were down a lot from the year before. At their current pace, Pontiac will just squeek by 400,000 units for the year. Since Nov and December could also be slow months, reaching 400,000 units may be a tough stretch! They only moved 25,000 in October (a 14% decrease), and stand at 338,000 for the year.

The G6 does appear to be turning into a bright spot. Combined G6 and Grand Am sales for this year are slightly ahead of the number of combined G6 and Grand Ams sold last year. GTO sales are also up 5.6%, and unlike last year most of those sales have been without huge incentives. It looks like Pontiac's biggest losses are coming with the Grand Prix at just over 5% down and the Sunfire, which is down 17% (and increasing fast because it is out of production). Pontiac really needs a Sunfire replacement sooner than later, especially with gas prices set to rise back to $3 a gallon next summer.
 

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Drex said:
GM Oct Sales

807 Sols for the month, 1,488 for the year. Overall Pontiac isn't looking too bad. Hopefully the 4 cycl G6 can pick the G6 sales to Grand Am level.

Cobalt is a good 10,000 above Cavalier sales. HHR sales are doing pretty good too.
I like the fact that GM if finally putting some different stuff on the road. Like it or hate it, the HHR is at least a little different. I kind of like it. My wife hates it, but what does she know anyway ;) Actually, I think the Vibe and G6 are nice looking cars in their classes and I would entertain either one of them again if I wasn't already busy waiting and waiting and waiting for my Solstice. Maybe some good dealer relations and customer service would help their long term sales efforts.
 

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If gas prices stabilize, even at $3 per gallon, truck sales will come back. It's the uncertainty that makes people skittish.
 

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Customer Service you say???

Exactly my thoughts KYSol......I am entertaining the idea of scrapping my wait and getting a different vehicle....I can't wait for a Solstice forever....I need to sell my current vehicle sooner rather than later.....

I was researching the Pontiac G6 as another purcharse option and I've definitely made up my mind that I won't be conducting that transaction with 95% of the dealers I've contacted to inquire on a Solstice. They've made the cold shoulder a new art form. Now that I want their business instead of the other way around, they treat me like I'm invisible; therefore, they really are losing any future business from me. I have found one dealer a couple of counties away who told me his owner won't allow them to charge over MSRP. Other than that, I've heard from $1,000 to $6,000 OVER the MSRP. How greedy can you get?? That gives a new meaning to upside down, but I guess the customers willing to pay $31,000 for a $24,000 automobile don't seem to care?

What was once about a beautiful car has become a frustrating experience completely (sigh). :(
 

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Editguy said:
If gas prices stabilize, even at $3 per gallon, truck sales will come back. It's the uncertainty that makes people skittish.
I am not sure they will totally come back. There are a lot of families that had stretched their budgets to afford those kinds of rigs, and at $3 a gallon it simply makes it very hard for them to buy those vehicles. Yes, there will always be a market for large trucks and SUV's, but that market has been inflated by people buying those vehicles, when a lighter, more efficient vehicle would do.

I suspect a lot of those sales will slowly shift more towards crossovers and car based SUV's and wagons, away from the larger SUV's. They still offer good space, they generally ride and drive better, and they offer better fuel mileage.
 

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Trucks and SUVs were already on a downward trend. Just look at the amount of incentives and features that have been added over the years to prop up sales. The writing has been on the wall for at least five years. The higher gas price I think, was just the straw that broke the camels back.
 

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Fformula88 said:
I suspect a lot of those sales will slowly shift more towards crossovers and car based SUV's and wagons, away from the larger SUV's. They still offer good space, they generally ride and drive better, and they offer better fuel mileage.
I would pretty much agree with that. It seems to me that the market was due for a change regardless. And I do think fuell efficiency will be a priority for buyers in this segment. But if you need a vehicle like this, SUV's in some form are a good, practical vehicle.
 

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Gas prices here are now "down" to $2.21 from $2.79 a couple of weeks ago and it appears that trend will continue. :) Will that inject new life into the auto industry? Only time will tell.
 

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Will make driving around a roadster a little nicer if people who don't need a full sized truck or SUV move away from them. If GM can nail the crossovers, things could be on a slight up swing for them. Mild hybrids will increase give a slight boost to MPG which will help sales. The sooner they can make the two mode hybrid an option the better. Throw it on the delta's and epsilons and maybe GM could get some positive tree hugger press.

The NA market has been hurt the worst, but globally GM is doing really well. Daewoo was a great inventment for them.

The Sunfire could use a replacement, but I'll cry if they give us the Pursuit. G6 vert will be out next year. Josh over at C&C has word that a new Pontiac slated for production will show up at the autoshows.
 

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Editguy, I agree. The segment was getting a little long in the tooth to continue it's rapid growth. It is now saturated with competitors, and very little seperates one from another these days. Especially midsize SUV's. Like the midsize sedan segment, everyone has one, none really stand out for reasons other than perceived quality/reliability, and buyers who want more than an appliance on wheels have gotten bored with them.

RWSimmons said:
Gas prices here are now "down" to $2.21 from $2.79 a couple of weeks ago and it appears that trend will continue. :) Will that inject new life into the auto industry? Only time will tell.
I am not sure the currently lower prices will really bring back buyers to the larger gas hogs out there. A few reasons why. First, people have now been burned by those temporary prices, and will be skittish to buy an inefficnant vehicle for fear those prices could return.

Also, experts are projecting those prices will return by next summer. So far, articles I have seen about the current downtrend in prices are estimating that gas will be at or above $3 a gallon again next summer.

I still don't think people will abandon their SUV's and trucks, but when they reach a time to replace them, those who do not really need them will seek out more efficient transportation.

Maybe the HHR is a good example of this trend. Chevy has already moved over 25,000 of them! That is a pretty good clip for a vehicle the bundits were leaving for dead before it hit production. It is just the type of vehicle people may want if they still desire good cargo and people capacity in a smaller, lighter, more efficient package and still have some standout from the crowd styling.
 

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Fformula88 said:
I am not sure they will totally come back. There are a lot of families that had stretched their budgets to afford those kinds of rigs, and at $3 a gallon it simply makes it very hard for them to buy those vehicles. Yes, there will always be a market for large trucks and SUV's, but that market has been inflated by people buying those vehicles, when a lighter, more efficient vehicle would do.

I suspect a lot of those sales will slowly shift more towards crossovers and car based SUV's and wagons, away from the larger SUV's. They still offer good space, they generally ride and drive better, and they offer better fuel mileage.
:agree: for many people, trucks and suv's were only a status symbol, and now they are finding that they do not need it so much. Last year GM brillantly made the decision to invest more heavily in trucks and suv's and cancel many of the car projects. They are introducing their new trucks and suv's 1 year earliy. GM was being very optimistic when their economists (contrary to every other economist in the country) predicted that gas would stay low and people would keep buying trucks and suv's.

Hopefully GM is seeing the light now and will introduce more of what the market wants, rather than what GM likes to sell. The truck and suv were GM's bread and butter, but as any economics 101 teacher will tell you, if you are making a product with a large profit margin competition will come(as we were starting to see). GM exec's seem to have skipped that class. That was probably also the class when they learned about supply and demand (as in a shrinking supply of gas, and an increasing demand has China's and India's economies speed up).
 

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deacon said:
:agree: for many people, trucks and suv's were only a status symbol, and now they are finding that they do not need it so much. Last year GM brillantly made the decision to invest more heavily in trucks and suv's and cancel many of the car projects. They are introducing their new trucks and suv's 1 year earliy. GM was being very optimistic when their economists (contrary to every other economist in the country) predicted that gas would stay low and people would keep buying trucks and suv's.

Hopefully GM is seeing the light now and will introduce more of what the market wants, rather than what GM likes to sell. The truck and suv were GM's bread and butter, but as any economics 101 teacher will tell you, if you are making a product with a large profit margin competition will come(as we were starting to see). GM exec's seem to have skipped that class. That was probably also the class when they learned about supply and demand (as in a shrinking supply of gas, and an increasing demand has China's and India's economies speed up).
I just wanted to state the other side of this. It may be a great time for GM to have sped up and introduced their new large trucks and SUV's. The new trucks will be getting significantly better fuel economy (often best in class). That could account for added sales and new customers who still want and/or must buy a truck/large SUV, but want to make it as affordable as possible.

GM has also stated that the new trucks and SUV's will be cheaper for them to manufacture. Therefore, they can sell fewer of them in a shrinking market and still make just as much money off of them. If sales do rebound, or they prove more popular than expected, GM could stand to make an even better profit off of them.

GM's pickups alone acount for nearly 1 million units a year. (Silverado and Sierra). That is a heck of a lot of vehicles, and regardless of gas prices you do not want to fall behind in that segment. Since they already had the oldest design on the road, it is high time for a redesign.

At anyrate, it may not be as absurd for GM to concentrate on them as some people on the net and in the press have claimed. Besides, GM has been concentrating on more efficient cars too, the Malibu and G6 midsizers are relatively new still, the Cobalt and HHR are really new and so far have been well received.
 
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