GM: Auto sales entering worst months of the year
Thursday, April 24, 2008 at 1:01 PM
Tags: Auto Manufacturers, Auto Sales, General Motors, OEM, Satellite Radio, Toyota
General Motors said yesterday that the US market slowdown had led to a sales decline that has given Toyota an early lead for this year's global auto sales.
For the first-quarter, Toyota capitalized on growth in China and Europe as GM saw its North American sales drag down gains in other markets. Toyota said sales grew 2.7 percent, selling 2.41 million vehicles for the period, compared with GM's 2.25 million, a decline of less than 1 percent. As a result, GM is about 160,000 vehicles behind its Japanese rival.
On Wednesday, GM became the latest automaker to predict that the industry was entering its worst months of the year. GM said that the second quarter, which typically has strong auto sales, could end up being the slowest period of the year.
Ford officials echoed the sentiment this month, stating that they believed Spring would be the slowest season for automakers in 2008.
Chrysler too said it was not counting on a significant improvement in the market this year.
"The big caveat is gas prices," said Michael C. DiGiovanni, GM's chief sales analyst. "This is clearly a head wind we didn't anticipate would be to this level."
The average price of regular gas has reached a record high of $3.533 a gallon, according to the AAA motor club. And that doesn't bode well for the belt-tightening consumer, who will continue to be less likely to purchase a new vehicle, and as a result become a satellite radio subscriber.
[New York Times, AP]
Pictured: The 2009 Cadiallac Escalade Hybrid, © General Motors.
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$3.533 average nationwide, you say? Paid $3.83 for regular unleaded this morning. I hate all of you.
Posted by: Mario (Brewed For Thought) | April 24, 2008 2:32 PM
When the US car manufacturers start building cars that the US market wants (and needs) then sales will pick up. The lots are full of 5000 pound SUV's that get 14 MPG or less that even with $4500+ rebates they can't sell them. Meanwhile the Honda CRV is the #1 selling SUV in the US and Honda does not have to discount a dime. The we have companies like Hyundai who offer 10 year/100,000 mile warranties. Without some big changes things will only get worst.
Posted by: Paul | April 24, 2008 2:40 PM
Gotta love the japanese SUV's. When they blow their horn people turn and laugh. Can you imagine a Herbie the love bug horn on a big ugly japanese "truck" ahhahahahahha
Ah gas prices. I can't wait until the a-holes on wall street start speculating the gas market and the cost to heat a home with natural gas goes through the roof.
Posted by: another thought | April 24, 2008 3:11 PM
Hey Dipshits,
Start building dependable cars that get good GPM and have an iota of resale and you too can beat Toyota.
Car people are so stupid and ingrained. They don't relate desirability to share...they just keep on building shit no one wants.
GO Detroit!
Go Away!
Posted by: Plowboy | April 24, 2008 8:05 PM
My fucking god. "This is clearly a head wind we didn't anticipate would be to this level." They didn't anticipate this?! What the fuck kind of drugs are they on? Everyone saw this coming for the last 5 years as more and more people bought those fucking gas guzzlers and starting commuting 100 miles a day with them eating up all the fucking gasoline in the country. If it wasn't for the assholes that feel entitled to whatever the fuck they want, this gas price problem wouldn't fucking exist. Jesus fucking christ people.
Posted by: NotACoward | April 24, 2008 10:15 PM
> Hey Dipshits,
> Start building dependable cars that get good GPM and have an iota of resale and you too > can beat Toyota.
Hey Dipshit - they have. Motor Trend had to begrudgingly admit that the new Malibu beats their favorite Honda in every category. They didn't give it car of the year (others have), that went to another GM product.
In fact, the last JD Power quality rankings has 3 of the top 5 auto makers as American, including Buick - who tied with Lexus for first. The quality is there. Resale comes around when stupid Americans decide they're worth more. Resale isn't always a direct indicator of quality anyway, unless your telling me that Harley Davidson's are the highest quality motorcycles in the world?
How many times has Consumer Reports been caught giving the foreign-badged versions of shared platforms higher ratings than American-badged ones? (Toyota/Chevy, Mitsubishi/Dodge, etc.) Even though they are the same car, made in the same plant - it's suddenly better because of a badge? Perception of quality, not the ACTUAL build quality is half of the battle.
Posted by: Anonymous Coward | April 24, 2008 11:55 PM
Hey Dipshit - they have. Motor Trend had to begrudgingly admit that the new Malibu beats their favorite Honda in every category. They didn't give it car of the year (others have), that went to another GM product.
---
Five lines and 45 + models, and after 100 years GM can crap out one huge winner..... the Malibu.... after two failed prior attempts.
I wouldn't call that a record.
I work at/for/with Ford, Toyota, GM , DCX and others..... If you think for a moment that domestic cars are on par with the Asians, I have some XMSR stock I'd like to sell you!
Posted by: Plowboy | April 25, 2008 9:20 PM