GM News, New Models and Market Share - READ ONLY

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#29098 of 32000 2013 Malibu Launch a failure?... by circlew

Dec 07, 2012 (5:53 am)

I believe so. Also, pickup sales along with Camaro dissapoint....
 
Car unit sales were pretty good, though some standouts included the Volt (up 303.4%), the Corvette (up 21.2%), and the Buick Enclave (up 22.8%). However, unit sales of the Camaro dipped 12.9%, while SUV unit sales were down pretty much across the board. We expect this trend to continue as crossover and small SUV sales cannibalize sales of the more profitable likes of the Tahoe and Suburban.
 
Pickup sales were poor, with the Colorado diving 33% year-over-year (even without competition from the Ford Ranger), while the Silverado fell 10%. Competition from Ford and Toyota (NYSE: TM) seems to be eroding Chevrolet’s pickup market share, and we do not see the trend reversing itself in the near term. Further, days sales of inventory for trucks sits at 139—nearly double what the company is targeting. Although truck sales should see a nice bounce from the Sandy aftermath, we won’t like the profitability outlook until the company cleans up its inventory. We remain on the sidelines.

 
Poor GM. Everyone is loosing faith. What's going on?
 
Regards,
OW

#29099 of 32000 Re: 2013 Malibu Launch a failure?... [circlew] by bpizzuti

Dec 07, 2012 (6:39 am)

Replying to: circlew (Dec 07, 2012 5:53 am)
The Traverse/Acadia is a decent vehicle, they really need to figure out how to make money off of that one. Tahoe needs to go, it's a niche now. Frankly so is Suburban, but that's a niche no one else really serves, and it's mostly a Silverado HD anyway.
 
The reason those BOF SUVs are so profitable is because there is little to no development to them. Under the skin they're modified Silverados. Not necessarily criticism: that's how most companies would build a BOF SUV. The problem is that BOF SUVs are not the vehicle of choice for the masses anymore, and that's not going to change with $4/gal gas.

#29100 of 32000 Re: 2013 Malibu Launch a failure?... [circlew] by uplanderguy

Dec 07, 2012 (7:05 am)

Replying to: circlew (Dec 07, 2012 5:53 am)
I'll agree that the 2013 Malibu launch, now eight months or so in, appears to be a failure...unlike the Camaro's, with strong sales right out of the box.
 
Someone mentioned the Traverse, above. I saw a new one at our dealer last time I was there, and I think the new grille (a la '14 Impala style...top of headlights and grille at same level) is a big, big improvement.
 
If Chevy incorporated that look into more lines, I think it'd be a plus. I'm reminded of the front end of the '79 Impala...a 'low profile' look and one line straight across the top of the headlights and grille. I like it.

#29101 of 32000 Re: Consumer Reports continues to conspire [bpizzuti] by uplanderguy

Dec 07, 2012 (7:13 am)

Replying to: bpizzuti (Dec 06, 2012 7:41 pm)
Realistically the entire Malibu line has been out not much longer than the Fusion.
 
This is a no-brainer, but I'm guessing you haven't spent much time at a Chevy dealer's of late.
 
They had pretty significant inventory of the Eco Malibus, eight months ago. I just saw my first Fusion (I actually typed 'Focus' first, the looks remind me of each other) about six weeks ago. About three months ago I first saw non-Eco Malibus on dealer lots, and at that point they outnumbered Eco models significantly in stock...if perhaps only at the two dealers I looked at.

#29102 of 32000 BMW recall by uplanderguy

Dec 07, 2012 (7:19 am)

Replying to: uplanderguy (Dec 07, 2012 7:13 am)
Since I just mentioned the Traverse, I was reminded of the very recent X5 recall:
 
http://www.edmunds.com/car-news/2009-12-bmw-x5-recall-delivery-stoppage-ordered.- html

#29103 of 32000 Re: 2013 Malibu Launch a failure?... [bpizzuti] by robr2

Dec 07, 2012 (8:32 am)

Replying to: bpizzuti (Dec 07, 2012 6:39 am)
Tahoe needs to go, it's a niche now. Frankly so is Suburban, but that's a niche no one else really serves...The reason those BOF SUVs are so profitable is because there is little to no development to them. Under the skin they're modified Silverados.
 
So why dump them? True they aren't the vehicle of choice for the masses anymore and they never were designed to be that. But they are profitable, cheap to make and market and they sell in decent numbers:
 
Tahoe/Yukon/Escalade 75K units in 2012
Suburban/Yukon XL/Escalade EXT 64K units in 2012.
 
Until they aren't worth the profit they make, GM should continue to offer them.

#29104 of 32000 Re: 2013 Malibu Launch a failure?... [robr2] by andre1969

Dec 07, 2012 (8:48 am)

Replying to: robr2 (Dec 07, 2012 8:32 am)
I recall reading that before they became trendy in the 1990's, the Suburban was usually good for about 50,000 units per year. Back then, they were usually bought by people who needed them...those who pulled travel trailers, horse trailers, construction firms, etc.
 
Now, in the old days they didn't bother to differentiate them hardly at all. A Chevy Suburban and a GMC Suburban used the same dash, and it was the same as the pickup trucks. Not sure if that's the case anymore. They also didn't bother to differentiate sheetmetal. You could take the doors off of a Chevy crew cab pickup and put them onto a GMC Suburban, for example. Dunno if you could take a door off a Silverado and put it on an Escalade nowadays though, as the sheetmetal might be a bit different.
 
But, I agree...as long as the things are profitable, they should keep selling them. Maybe drop the Cadillac version if its sales fall off too much, although I have a feeling the Escalade is the most profitable of them all.

#29105 of 32000 Re: 2013 Malibu Launch a failure?... [andre1969] by robr2

Dec 07, 2012 (9:20 am)

Replying to: andre1969 (Dec 07, 2012 8:48 am)
Maybe drop the Cadillac version if its sales fall off too much, although I have a feeling the Escalade is the most profitable of them all.
 
The Escalade is good for 10K+ units a year and commands somewhere around a 20% premium.

#29106 of 32000 Re: 2013 Malibu Launch a failure?... [robr2] by andre1969

Dec 07, 2012 (9:24 am)

Replying to: robr2 (Dec 07, 2012 9:20 am)
I wonder if Ford is making much money off the Navigator these days? I heard it's fallen on some pretty hard times.

#29107 of 32000 Re: 2013 Malibu Launch a failure?... [andre1969] by dieselone

Dec 07, 2012 (9:35 am)

Replying to: andre1969 (Dec 07, 2012 8:48 am)
I recall reading that before they became trendy in the 1990's, the Suburban was usually good for about 50,000 units per year. Back then, they were usually bought by people who needed them...those who pulled travel trailers, horse trailers, construction firms, etc.
 
Yeah, in the 70's and 80's there were more vehicles that had similar capabilities to a Suburban. The average family could pull a small camper or boat with the family sedan or wagon. Or you could get a full-size van. I seem to recall full-size vans were more popular in the 80's than Suburbans. My FIL had 3 Dodge Ramvans from the late 70's through the late 80's.
 
Now days, if you want tow anything larger than a pop up camper or a small boat, a SUV, full-size van, or pickup is about the only choices.

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