Despite Strong 2012, General Motors’ U.S. Market Share Sinks To Historic Low
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With General Motors selling 2,595,717 total vehicles for the year of 2012, growing 3.7 percent year-over-year, and having the best December in five years, one would assume that the company’s market share would have grown. Surprisingly, it did not. Because while The General’s sales were up, the competition grew faster. This left GM with a 17.9 percent market share in the United States in 2012, nearly two full points down from the 19.7 percent share in 2011, according to WardsAuto.
This is the lowest market share in post-World-War-II history. Despite this, GM North America President Mark Reuss is optimistic, and patient. He openly admits to GM’s product portfolio being the oldest in the industry, but he claims that in 18 months from now, the tables will turn.
“It will be the biggest portfolio turn, I think, in U.S. history,” Reuss stated in a conference call. We’ll just have to wait and see.
Will they try selling some hatches and wagons already!
GM is so old in their sales philosophy , have to bring out new models every couple of years , out with the old in with the new…look at us look at us . When they hit the market with a real strong seller , I’m getting sentimental here… take for instance the Chevy Cavalier coupe with the cute bustle rear end. I still see lots of these on the streets here, women driving most of what I see . Amazingly , though we have long winters with lots of salt on the roads , I don’t see any rusted out ones…well built . These have good sized windows so women get good visibility , even to the rear .However, this little gem wasn’t refined and GM’s stroke of genius was to rename it to Cobalt and change it completely . Buyer word of mouth excitement disappears , owners now left with a discontinued product with a different wedge shape Cobalt coupe introduced with zero rear visibility . Sales go down and so disappears the coupe , never to return . Women are the main buyer or buyer influence on over 50 % of vehicles sold . They average 5 ft 2 to 5 ft 5 m/l , are cautious , need good visibility , their spatial orientation is not as strong as men . Most of their driving is in the city , to work , to the supermarket , to the malls , driving kids to activities , parking is usually in often congested parking stalls of 8 to 8.5 ft width . Shorter wheelbase for access these sites is important as is visibility . They are much influenced by what their friend drive , recommend and they don’t like to buy used . While they spend like crazy on clothes and shoes , they are a frugal lot when spending it on gas or upkeep . So when you get a real strong seller , why not expand its popularity and keep refining it , so that ads on TV or magazines don’t become the biggest buyer influence , but word of mouth by happy buyers does ? They hit the market years ago with a timely popular sub compact coupe design but let it slip away . Ackerson’s comment of late ,in describing a new GM product coming on stream said ” it will do okay ,you know its in a tough market segment “. No kidding , if okay is about what you expect in in such a competitive market , then I guess that’s just about what you can expect GM to do ….okay , and so slips market share ! Why not take a best seller like the Cruze and add a coupe and five door hatch,, , other major companies do it in this segment and do very well . You have a hot seller here , lots of happy buyers and with a coupe and hatch , the happy buyer base just expanded immensely . Grow it , refine it , the reward is more happy buyers rave about it . Quit looking over the rainbow all the time for the magic formula , you’ve got one in your hand , no ?
GM shouldn’t concern itself whit market share. As sales continue to go up so will market share (eventually). I agree with “thehofinater” and would like to see some hatchbacks and wagons. GM is forcing competition among its own brands and models with too many similar vehicles. Isn’t that why they go rid of Saturn and Oldsmobile? There are too many (similar) sedans. Regals were selling well until the Verano came on the market. Now Verano is undercutting Regals. You get about the same thing at a much cheaper price. Plus the Regal is competing with the Chevy Cruze as well. I have a 2012 Regal by the way (I love it). GM needs to build cars that fit different niches and don’t compete within those different niches. Example: Buick has three sedans: Lacrosse, Regal and Verano. Which one am I going to buy that I can get fully loaded at the cheapest price (most bang for my buck)? All three vehicle are similar enough in size, looks and now each have upgraded engines. That is why Lacrosse and Regal sales are down and Verano sales are up.
There still seems to be a sense that GM is missing the boat as others car makers sail on by…
I think the comments above – basically cannibalizing their own sales – is an excellent point. They got rid of the duplicate divisions, so seriously look for each of the four makes and give them something unique.
I still question the need for GMC if Chevy has a dupe for each. Buick needs a sporty flagship like an updated, reinvented Riviera. The Cruze should offer more practical options (hatchback or wagon) for a success like the Cruze, etc.
They’ve come a long way but someone needs to make sure it has a laser-focus for each segment.
The Cruze begs for some updates!
GM does not seem to get it when it comes to styling, creature, comforts and built in toy you will find in other brands. Example go into a Ford or Chrysler showroom, you will find that many of their cars will have a neat Radio/ GPS system. At GM showrooms you will find ON Star not cool, just another bill to pay and keep up with.
Bill, GM not only gets it, but often hits it out of the park when it comes to all of the items you mention, including “styling, creature comforts, and built in toy” (what the heck is a built in toy, anyway?).
As for your examples regarding infotainment systems: ever heard of Chevy MyLink, Buick/GMC IntelliLink, or Cadillac CUE? All of these systems (arguably) top those from Ford and/or Chrysler. What you WON’T find in competing cars is OnStar… or the ability to remotely start the car using a smartphone app.
Seems like you are either misinformed or your thinking is lagging reality. Here some further reading for you:
Chevy MyLink:
http://gmauthority.com/blog/category/technologies/chevy-mylink/
Cadillac CUE:
http://gmauthority.com/blog/category/technologies/cadillac-cue/
OnStar RemoteLink app:
http://gmauthority.com/blog/category/onstar/onstar-remotelink/
usayjim, The crapelier, you bring up the crapelier as an example of a good GM design and built car… while I patiently read through the disertation and think you hit a home run on many things you said; I cant for the life of me believe you referenced the cavalier… GM has come a long way, and the cobalt was a giant step forward from the cavalier…
Brand Identity, Being strategic and carefull with brand language is crucial… Look at VW, they are paying attention, they recognize they sell motorized vehicles with 4 wheels and at the foundation level this is what people want; is it going to take me from point A to point B… Is the design language consistent does it look like a (I want to swear) Jetta. Toyota: does it look like a camry, heck to the yes, Nissan: does it look like an altima; YES… Previous gen Malibu (08 – 12) huge jump in design language, clean nice looking, no lets make it look like a Camaro in the back and deform the front… Put a garbage eco version on the market, oh and by the way no V6… Ugggh, Oh yah and forget about any wagon versions of anything… People buy cars from manufacturers that offer reliability, consistent design languages on the exterior and in the interior, and consistent offerings… This is why GM has lost market share… A Malibu is not a Camaro its a Malibu, personaly I like the new BU but its not about me, its about selling cars in mass quantities and doing it well… VW creates a clean straight forward design language that is being noticed and which has been consistent for well forever, but the new products are really strong… Quality well that is another story, I would never own a VW; maintenance costs whew… Yikes… This also gets back to the name changing people have been talking about; Look at what Honda did with the Civic recently, oh bad reviews, consumers dont like it, Fixed imediately, protecting the brand within the brand… GM has had collosal disasters in branding and quality in its past… Lets hope moving forward (Although with names like Sonic and Spark, yikes I dont know) things improve. I really believe GM has the potential to be the absolute best auto manufacturer in the US and the World, building cars with the best quality should be #1; while establishing a strong and consistent design language for each brand and core products…