GM FastLane:Some Good News

[Bruce Nunnally]

By Bob Lutz

GM Vice Chairman

You’ve all heard me complain about quotes -- from analysts, industry experts and media -- whenever I believe these are based on conventional wisdom, or simply not in line with the new reality at GM, and I will continue to do that whenever I believe it is warranted. But … to give credit where credit is due, I have nothing to complain about when it comes to our recent product reviews.

Our new products are receiving very good to excellent reviews pretty much across the board, and I believe GM has started regaining credibility on the product front. And since 30% of our sales are now newly launched products, the news is starting to spread.

One recent piece of coverage I’d like to point out is this review of the Corvette Z06 from Autoextremist.com. As usual, it is a provocative piece of writing, but what about this quote: “The Corvette Z06 is simply the most seductive combination of power, speed, drivability, value and overall efficiency that exists in the world today. A high-performance super car for the real world, it is a milestone achievement that deserves recognition as much for its capabilities, as for the people behind it.”

In addition to the stellar reviews, our sales are beginning to reflect that car buyers may be getting the message and seeing the results of our efforts. Despite the recent rise in fuel prices and against industry trends, GM had an encouraging story for April with our increase in truck sales. This was driven by the strong performance of the all-new full-size sport utility vehicles and our full-size pickups.

Chevy Tahoe sales were up 35 percent in April, GMC Yukon posted a 36 percent sales gain, and Cadillac Escalade, one of our hottest new products in the market, improved dramatically, with a 127 percent improvement over last year. GM’s newest entries in the crossover category also contributed to the improvement in overall truck sales. Chevrolet HHR, Equinox and Pontiac Torrent all posted solid results. HHR had its best-ever sales month,

with Equinox showing record April sales.

HUMMER set yet another sales record in April, with total sales up 236 percent. H3 continues to drive the brand’s record-setting pace and leads the entry luxury utility segment by a wide margin. Saturn posted a year-over-year sales gain of 14 percent with retail sales up 3 percent. Saturn Vue continued its sales momentum with its 11th

consecutive month of year-over-year sales increases up 33 percent. And by the way, the new Saturn Sky sold its first 612 units in April. Demand for the all-new two-seat Sky roadster continues to outpace supply, with vehicles remaining on dealers’ lots an average of only 10 days.

The message that GM has more and more great looking products is starting to get through. The message that we lead in fuel economy in many segments is starting to be understood. The message that GM always has been and continues to be a leader in the development of life-saving technologies (think OnStar), comfort and convenience (think XM), and advanced technology (E85, 2-mode hybrids, fuel cell) is gaining traction.

Rest assured -- we know there’s plenty of road still to cover, and we won’t let up on our efforts. Believe me: it only gets better from here! More and better executed cars and trucks, with expressive design and super interiors, developed with a segment-winning mindset, and each with a strong and singular brand mission.

http://fastlane.gmblogs.com/archives/2006/..._good_news.html