May was not the best month for General Motors’ retail sales. After 12-months of retail sales increases for the automaker, the growth slid back. GM blames its planned reduction in cheap, rental vehicle sales and less incentives throughout its portfolio of vehicles.
According to Automotive News, the incentives shall return for June. Chevrolet will be the focus of new retail incentives, with a whopping $8,025 cash back incentive on select crew cab models during its “Truck Month” promotion. Additionally, those crew cab pickups may also be had with 0-percent financing for 60-months.
The Impala, Sonic and Spark will also see a 20-percent sticker price slashing, along with $750 cash back for non-GM owners to enter a new vehicle. A blitz of new advertising for the 2016 Chevrolet Malibu and Cruze are also on the way, too.
“Now, it’s time to close out the second quarter and defend our position as the fastest growing full-line brand of 2016,” Chevy U.S. chief Brian Sweeney, wrote in an email to dealers Wednesday.
Overall, retail sales slumped 18-percent in the U.S., putting GM just ahead of rivals Ford and Fiat Chrysler in terms of marketshare. GM also pointed to its production constraint issue surrounding the Japanese earthquake situation as a factor.
Even with the short-term blow, GM North America chief Alan Batey stated the automaker is committed to reducing its sales to rental fleets, in order to boost residual values. He also stated the increase in incentives will scale back as we run the course of 2016.
Comments
In a few months we will see growing model year changeover discounts for all brands. The media will blow this out of proportion as they do so every year. Business for the domestics is holding up well. A weaker dollar will also help global profits.
GM has many new suv/ crossovers to come to market within 12 months.
Watching Game 1 of the NBA Finals last night –
During the first break in the action, up pops a GMC Acadia (I think) basketball-themed commercial, cut-down with a lease/deal offer and total savings of $8000+ or something …
Now, we know sales are slumping, but the first commercial break of the NBA finals doesn’t seem like the right placement for an in-your-face, cash on the hood deal.
Cadillac needs help, they ran a few commercials later on, but didn’t hit viewers with an incentive. Nor did Toyota.
I dunno – it’s just felt like the old GM, to hit a viewer with a lease/savings deal right out of the box; especially since GMC is a premium brand, and Golden State-Cleveland is appointment viewing for a larger-than-normal viewer base.
I could see, maybe doing a “clean” version early, and come back with a deal-version in the 2nd half.
But hitting viewers right away, with a lease deal/cut-down version smacked of desperation.
who can spot what is wrong with the picture in this story? anyone, everyone!
No Chevys parked in front?
Yes, looks like a Photoshoped image of a Buick/GMC dealer?
It sure is. I don’t think the sales slump is a big deal as it is only one month. Now if it continues we’ve got a problem.
Think it is time to worry!
In the Pittsburgh market where I live, we’ve been inundated with Silverado commercials for awhile. Result, May sales tank 12%+ from last year, F150 sales increased and handily outsold GM twins!
No redesign in 2017 so going to be tough sledding in the full size pickup market. This is GMsvolume and profit leader! Please no excuses about shortages of Silverados. Believe there was somewhere between 68/71 days inventory.
I’m in Pittsburgh too and I don’t watch a lot of TV so I can’t comment on the Silverado commercials. I will say C Harper is killing it with the F150 ads on Pandora for $11,000 off sticker.