Skip to comments.Detroit trio’s U.S. car sales jump in August
Posted on 09/01/2011 12:36:47 PM PDT by NoLibZone
SAN FRANCISCO (MarketWatch) General Motors Co., Ford Motor Co. and Chrysler Group LLC managed to shrug off an ornery Mother Nature, some wild stock-market fluctuations and a stubborn economy to report Thursday double-digit percentage gains in U.S. sales for August.
That wasnt the case for the leading Japanese manufacturers. Toyota Motor Corp. /quotes/zigman/199376/quotes/nls/tm TM -0.95% fell behind Chrysler by just a few hundred cars and Honda Motor Co. /quotes/zigman/193599/quotes/nls/hmc HMC +0.96% saw its sales slip by more than 20% for the fourth consecutive month.
GM /quotes/zigman/1466682/quotes/nls/gm GM -4.22% said it sold 218,479 cars and trucks in August, an 18% improvement from a year ago. The retail side gained 22% while less-profitable sales to fleet customers like rental car companies rose 8%. The improvements were steady across the product lineup, with cars and trucks up 18% each and crossovers ahead 17%.
(Excerpt) Read more at marketwatch.com ...
We don’t need unemployment extensions!
These are very surprising numbers—all the other numbers are tanking. Was last August way low because of the termination of cash for clunkers or something?
The summer months are usually when they run sales to clear the lots of as many of the current year models as possible to get ready for the introduction of the next year's models.
Gee, I wonder how many Volts they sold last month? 500? 600? As I’ve predicted before, GM will keep that turkey around until Obama exits the White House. They’re already planning a diesel version of the Chevy Cruze that will deliver 50 MPG, for less than half the price of the Volt. That model (along with Obama’s departure) should be the final nail in the Volt’s coffin. Incidentally, the diesel Cruze will go on sale next September, just two months before the anointed one faces an angry electorate.
Volt sales up 170% in August from July.
Sales 320 in August vs. 125 in July.
Total sales for the year: 3172
These are very surprising numbersall the other numbers are tanking. Was last August way low because of the termination of cash for clunkers or something?
There are two things involved: Channel stuffing and give-away's.
Channel stuffing refers to the practice of forcing your inventory off on your dealerships (i.e. "channels of distribution"). Sales and collections become their problem, not yours. You book sales now. They hopefully book sales later. Good for you. Bad for them.Neither of these programs are indicative of good management. And neither are sustainable.
Give away's refers to programs of year-end clearance sales, rebates, zero interest rate financing, etc. In other words, the manufacturer loses his *ss on every sale, but makes it up on volume.
Good post. Thanks for sharing some insider insight!
All of the Japanese manufacturers are still working to get up to speed following the earthquake and tsunami. They still have parts shortages over there because parts makers were so affected.
The dollar is also sinking against both the Euro and the Yen, so the Fed printing presses are subsidizing sales of big ticket US made products.
Conflicts with what Burt Flickinger, managing director of Strategic Resource Group is saying:
Flickinger Sees `Scary Signals’ of Retail Recession
Doesn’t say who the buyers were. Every cop and gummint official seems to be driving a brand new Chrysler. Hmmmm. 24 beers in a case...24 hours in a day...???