General Motors Sales Down 6% in December 2009

GM held the line on share at 20% of the market.

Dealers for General Motors Company in the U.S. delivered 208,511 vehicles in December. This is a total sales decline of 6% from the previous year, attributed by GM primarily to declines in fleet sales (33%) and in sales of non-core brands (55%).

The decrease comes as the market rises about 15%, as GM continues to struggle to turn things around in its home market after decades of decline and an eventual bankruptcy reorganization last year.

The U.S. December 2009 Seasonally Adjusted Annual Rate is estimated to be about the same as November – 11.0 to 11.2 million (total industry estimate) – resulting in total vehicle sales of 10.6 million for 2009, the lowest SAAR since 1982 when GM had about 50% of the market. GM now has about 20% of the U.S. market, making it number one in the U.S. followed by Toyota at 17% and Ford at 15%.

The decline in actual vehicles sold by GM for the year was almost 900,000 vehicles.

GM dealers in the U.S. reported 160,996 retail deliveries in December – a 7% increase compared to last year, and a 50% compared to last month. Retail sales of Chevrolet, Buick, GMC and Cadillac brands were 146,419 – up 13%.

“The fact that our retail market share has increased two full points from the third to fourth quarters demonstrates that we are strengthening our brands,” claimed Susan Docherty, GM vice president, U.S. Sales. “We are delivering a healthier sales mix and earning consumer confidence through our launch vehicles such as Chevy Equinox and Camaro, Buick LaCrosse, GMC Terrain and Cadillac SRX.”

In its latest reporting period, GM lost $1.2 billion after emerging from bankruptcy with what is said to be drastically lower costs with a corresponding decrease in break-even sales volumes.

In 2009, GM dealers delivered 2,084,492 vehicles, down 30% compared with 2008.

“The year-over-year comparison reflects a 38% reduction in fleet, reduced overall incentive spending and the orderly wind-down of the Pontiac and Saturn brands,” Docherty said. “Our sell-down of Pontiac and Saturn inventory is 10 months ahead of schedule and we only have about 1,700 vehicles left – 800 Pontiacs and 900 Saturns. This shows real progress in our action plans.”

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