GM NA Q3 Sales Down 18.9%
From GM PR: “Record-setting sales performance in GM’s Latin America, Africa and Middle East and Asia Pacific regions during the third quarter of 2008 helped General Motors sell more than 2.1 million vehicles globally during the third quarter 2008. Compared with the third quarter of 2007, GM’s total sales were down 11.4 percent, reflecting continuing economic pressures in the U.S. market, which pushed North America sales down 18.9 percent, and growing pressure in Europe, where sales were down 12.3 percent. Sales of 1.286 million vehicles outside the U.S. accounted for nearly 61 percent of GM’s total global sales volume compared with just over 56 percent a year ago.” And that’s how you spin ’em boys. Meanwhile, every one of GM’s eight U.S. brands cratered, big time [all stats Q3 losses, year-to-date]: Buick (-19.1), Cadillac (-15.6), Chevrolet (-15), GMC (-19.3), HUMMER (-46.4), Pontiac (-14.7), Saab (-31.9), Saturn (-16.9). Take fleet sales out of that mix, consider discounts relative to profits… There’s blood in the water folks.
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I went to the source. It says: “Chevrolet sales in China (up 4.3 percent) and India (up 4.9 percent) powered much of this growth. The Wuling brand continued strong growth in China with sales up 21.9 percent in the third quarter compared to the same period a year ago.” Hmmmm. I don’t have comparable 3rd quarter numbers handy, but if Chevy’s Chinese sales are up 4.3% in Q3, then last year’s 3rd quarter must have been utterly miserable. The latest news I have from Gasgoo is that “in the first nine months, China's car giant Shanghai GM had finished only 54% of its 2008 sales goal, so the joint venture had to reduce this year's sales target of its Chevrolet brand by 25%.” And Wuling? I know, protecting the rights of minorities is important, but GM is back at its old tricks. GM holds only a 34% share in that maker of cars-for-dwarfs, SAIC holds 50.1% and Wuling Motors 15.9%. Counting sales of minority-owned companies is a big no-no in the trade.
Bertel, that's why the bogus numbers that GM put forth earlier in the year when Toyota actually passed them worldwide were called out by some - but not all automotive news outlets. Kind of reminds me of the one-way news slanting in the main stream media towards The One right now.
Interesting little misdirection ploy GM is playing here. Throwing out bad news to distract from "really bad news" that is on its way. Quarter 3 (worldwide) drop of 18.9% doesn't sound nearly as bad as October (part of quarter 4) US sales down 40-43% (Edmunds' preliminary numbers) in the US. If the October loss is in the 40's, and continues through the end of the year (and why wouldn't it?), GM's previous cash burn of 1 billion per month may be 3-4 billion per month, making it hard to last through inauguration day 2009.
Let me know if I got this right. GM sales were down 18.9%. Toyota's was down 25.9% and Ford down 32%. Seems to me GM's marketshare actually increased? Just looking for a silver lining somewhere...that's all.