Chevrolet, Buick, GMC and Cadillac Drive First GM Sales Increase in 21 Months

[Bruce Nunnally]

DETROIT – A strong performance by GM's four core brands -- Chevrolet, Buick, GMC, and Cadillac -- resulted in GM U.S. October sales of 177,603 vehicles, up 4 percent from last October, the company's first year-over-year gain since January 2008. Total sales increased 13 percent when compared with September. The four brands accounted for about 95 percent of GM's retail sales, an increase of 10 percentage points compared to the prior year.

“We’re very pleased with consumer acceptance to our newest cars, crossovers and trucks,” said Susan Docherty, GM vice president, U.S. Sales. “While we have more work to do, we are making progress and will continue our focus on delivering vehicles and a sales and service experience that brings consumers to Chevrolet, Buick, GMC and Cadillac – and keeps them coming back.”

October quick facts:

* Total GM sales increased 4 percent compared with October, 2008; retail sales were up 15 percent for the same period.

* Year-over-year total sales increase is the first since January, 2008.

* GM gains market share for the third straight month – estimated at 21 percent of the total light vehicle market.

* Chevrolet, Buick, GMC and Cadillac retail sales represented 95 percent of October retail sales vs. 85 percent in October, 2008.

* Combined Buick / GMC retail sales were up 33 percent compared with last year, driving Buick-Pontiac-GMC retail sales up 12 percent.

Chevrolet Retail Sales Up 31 Percent

Strong retail sales of Chevrolet’s launch vehicles – Camaro, Equinox, and Traverse – led to a year-over-year increase in total sales of 9 percent, and a 31 percent increase in retail sales for the same period.

Chevrolet key facts:

* Malibu retail sales for Malibu were up 84 percent compared to a year ago.

* Camaro continues to distance itself from competition, selling nearly 8,000 vehicles during the month and we anticipate we will hold the top spot in the regular sports car segment.

* Corvette retains the number one position in the luxury sports car segment with nearly 28 percent of the market.

* Equinox share in compact crossover segment is growing, having more than doubled in a year to 10 percent – the highest since August, 2007; added a third shift to keep up with demand.

* Silverado total sales of 31,800 were driven by the strength of Chevrolet’s “Truck Month” promotion.

"Chevrolet had a solid sales month in October supported by our 2009 launch products Camaro, Equinox and Traverse," said Brent Dewar, vice president, global Chevrolet. "Our broad lineup appeals to a range of consumers, whether it's the modern sports car, Camaro, appealing to performance enthusiasts or the Equinox and Traverse delivering what today's families care about: safety, styling and efficiency."

Buick – GMC Total Sales Up 33 Percent

Buick car and crossover sales showed improvement in October vs. a year ago, led by the all-new LaCrosse and Enclave. Sales of the all-new GMC Terrain and GMC’s “Truck Month” promotion helped lift GMC total sales 20 percent, and retail sales 35 percent for the month, compared with last year.

Buick key facts:

* Buick had its best total sales month for 2009 (9,053) and best since October '08, up 19 percent.

* LaCrosse had strongest month since launch, up 36 percent compared with September 2009, and up 103 percent compared to October 2008.

* Enclave total sales up year-over-year 38 percent.

* Lucerne had highest sales month of 2009 with sales of 4,324.

GMC key facts:

* GMC total sales were up 20 percent vs. October 2008, the highest monthly sales in 2009.

* Terrain total sales were up 85 percent over combined Pontiac Torrent / GMC Envoy October 2008 total sales and up 124 percent from September 2009.

* Sierra reported its highest total sales month of 2009, up 6 percent vs. October 2008.

* Yukon / Yukon XL combined total sales were the highest since September 2008 (5,425), up 72 percent vs. October 2008.

* Acadia total sales were up 7 percent year-over-year, while retail sales increased 30 percent compared to October 2008.

“We like the momentum we’ve seen in the sales of new Buick and GMC models,” said Susan Docherty, Buick-GMC general manager, and GM Vice President of U.S. Sales. “In October, Buick and GMC both had their best sales months of 2009, and in fact, total sales for these two brands were up 33 percent over October 2008 for the combined total of Buick, Pontiac and GMC.”

Cadillac Total Sales Up 22 Percent

Led by the performance of the all-new SRX, Cadillac sales increased by 22 percent compared to a year ago, and were up 2 percent vs. September.

Cadillac key facts:

* SRX: total sales were 280 percent higher than October 2008 and were up 21 percent compared to September - the second best performance of the vehicle in history.

* SRX: days supply is 34 days, based on month-end inventory.

* Escalade: Year-over-year total sales were 37 percent higher and market share continues to outperform competitors, including the Mercedes GL and Lexus LX 570.

"The interest customers are showing in the new SRX is exciting – we are seeing Lexus, BMW and Mercedes customers trading their vehicles for the SRX," said Bryan Nesbitt, Cadillac General Manager.

Other brands Sold 15,089 Vehicles in October

Total combined sales for Saturn, Pontiac, Saab and HUMMER were 15,089 for the month. As a percent of total GM sales, these brands represented 9 percent of sales, compared with 15 percent in October 2008.

Management Discussion of October Sales Results

The U.S. October 2009 SAAR of 10.6 million is a 13-percent improvement compared to last month, but is the second-lowest SAAR for October since the early 1980s. The U.S. economy and auto industry are showing signs of recovery:

Economy

* Normalization of credit spread, which is down to approximately 20 to 30 basis points – is helping make more credit available to consumers. However, consumer credit is still contracting – reflecting both weak credit demand and cautious bank lending.

* Consumer confidence has softened a bit in October, but remains much improved from the trough in March.

* Manufacturing sector is increasing output due to depleted current inventories.

* Job losses continue to slow, however employment levels continue to be a concern.

* Housing starts and home resale prices are beginning to stabilize.

Auto Industry

* Industry estimated October SAAR of 10.6 million could be the highest monthly SAAR since November 2008.

* It appears that the bulk of the “Cash-for-Clunkers” pull-ahead occurred by the end of September.

* Industry inventory levels are anticipated to increase moderately into Q4 to support modestly rising industry sales.

GM Reports October Production; Fourth Quarter Production at 620,000 Vehicles

In October, GM produced 228,000 vehicles (92,000 cars and 136,000 trucks). This is down 90,000 vehicles, or 28 percent compared with October 2008, when GM North America produced 318,000 vehicles (151,000 cars and 167,000 trucks). (Production totals include joint venture production of 15,000 vehicles in October 2009 and 11,000 vehicles in October 2008)

GM third quarter production was 531,000 vehicles (205,000 cars and 326,000 trucks), which was down 42 percent compared to the same quarter in 2008. GM North America built 915,000 vehicles (436,000 cars and 479,000 trucks) in the third quarter of 2008. However, third quarter production was substantially higher than production volumes for Q1 and Q2 2009 of 371,000 (up 43 percent) and 395,000 (up 34 percent), respectively.

GM’s 2009 fourth quarter forecast at 620,000 vehicles (239,000 cars and 381,000 trucks), which is down about 24 percent from a year ago. GM North America built 815,000 vehicles (365,000 cars and 450,000 trucks) in the fourth quarter of 2008. However, Q4 2009 production volumes represent a 17 percent increase compared to Q3 2009.

At October month-end, inventories of vehicles for U.S. dealers increased to 444,000 (172,000 cars and 272,000 trucks) compared to September, 2009 (157,000 cars and 267,000 trucks), an increase of 5 percent. Compared to month-end inventories for October 2008 (336,000 cars and 464,000 trucks), inventories decreased by 356,000 (164.000 cars and 192,000 trucks), or 45 percent.

[Bruce Nunnally]

Behind the Numbers

GM’s four brand strategy is working: “Many wondered how we could maintain market share with fewer nameplates. Our October sales are an early indicator our strategy for maintaining market share with fewer brands and nameplates is gaining traction.

“GM’s October light vehicle market share came in at approximately 21 percent and core brands – Chevrolet, Buick, GMC and Cadillac - accounted for about 95 percent of GM retail sales.

“We started to really see movement in July, when Chevrolet, Buick, GMC, and Cadillac accounted for 85 percent of GM sales. We’ve consistently grown this percentage over the past few months thanks to the strength of launch products and our aggressive strategies to keep current customers in the GM family.”

-- Michael DiGiovanni, Executive Director, Global Market and Industry Analysis

Buick/GMC channel continues to gain strength: Buick/GMC sold more in October than the Buick/Pontiac/GMC channel sold in the same month of 2008, driven by new launch products including Buick LaCrosse (up 103 percent over last October) and the GMC Terrain

“We’re hearing great things from our dealers about consumer enthusiasm for the Buick LaCrosse and Enclave and GMC Terrain. It’s great to be back in the game with outstanding cars and crossovers that generate excitement in showrooms.”

-- Susan Docherty, VP, GM Sales

Crossovers continue to boom, displacing minivans in the process: Chevrolet Equinox sales continue to grow and hold 10 percent of critical compact crossover segment. Internal study shows that more than 50 percent of 2010 Equinox customers traded in a non-GM vehicle. Production was increased to keep up with demand.

“One out of 10 vehicles sold this year will be a crossover. Fuel-efficient crossovers like the Chevrolet Equinox and Traverse provide families with uncompromising safety, functionality, and class.”

-- Brent Dewar, VP Chevrolet Marketing