Sales of Full-Size SUVs Drop in February; GM Increasing its Share
02 March 2006
|
| Change in sales of full-size SUVs. Click to enlarge. |
Sales of full-size SUVs in the US continued their decline in February, dropping 14% to 103,566 units from 120,376 units sold in February 2005. For the combined first two months of the year, sales of full-size SUVs dropped 11% from 216,485 units to 192,810.
Within the shrinking segment, however, GM is dramatically increasing its marketshare. Although sales of GM’s full-size SUVs decreased in total by 2.1% February to February, its market share of the full size SUV segment increased from 49.5% to 56.3%.
For the combined first two months of the year, GM’s market share of the full-size segment increased from 50.2% to 57.1%.
|
| GM’s results. The Tahoe is the clear leader. |
Much of this gain is being driven by the success of the all-new Tahoe, the first of GM’s redesigned full-size SUVs to hit the market. Sales of the Tahoe in February shot up 42% from 10,481 to 15,431 units. The increase of 4,950 units represented by far the largest unit increase for any automaker’s full-size SUV during the month.
At the same time, Ford, the second-largest provider of full-size SUVs, saw its market share in this segment drop to 28.7% for the month, and 26.9% year-to-date.
This increase of market share in a shrinking segment is exactly the results GM execs had hoped for last year as they began promoting their redesigned full-size models. Increasingly, if sales trends continue, GM will become even more synonymous with full-size SUVs.
GM’s total sales for February were down 2.5% to 301,545 new cars and trucks compared to the same month a year ago. Total car sales were down 13%, and truck sales were up 5%.
In other news, GM increased its share of deck chairs on the Titanic. This is exactly what they had hoped for.
Posted by: t | 02 March 2006 at 05:53 AM
^ I doubt that GM had hoped to sell fewer SUVs than last February. What I'm wondering is: what is it about GM's SUVs that is considered superior to other SUVs by actual SUV buyers?
Posted by: stomv | 02 March 2006 at 08:16 AM
Exactly right t,
The more I hear from GM management, the more amazed I am they are not bankrupt yet. But I guess one only has to give them enough time.
A major improvement at GM would be to fire the entire management and don't replace them. Surely doing nothing at the top would be better than the class act current management is performing.
Then, take the $$$ saved in management salaries and pay for the health care, retirement, etc. There may even be money left for R&D to produce some decent cars...
Posted by: An Engineer | 02 March 2006 at 09:51 AM
"what is it about GM's SUVs that is considered superior to other SUVs by actual SUV buyers?"
It's probably lower prices and bigger incentives that make a difference.
Posted by: Mike GR | 02 March 2006 at 01:28 PM
http://paultan.org/archives/2006/03/03/students-build-hybrid-sportscar-powered-by-soybeans/
Posted by: rexis | 02 March 2006 at 04:21 PM
Gm has always had better SUV, they look better, get more miles, and they are not discounted selling @gms new price,
seeing how this the greencarcon i can expect most of you to be closed mind to the fact the full size SUV has a propose in today's car market. most of u are blind to gm hybrid work and no i am not talking SUV. Gm has been running hybrid buses for about 4 or 5 years it the same one being put in their SUV and future cars.
Posted by: car fan | 03 March 2006 at 03:38 PM
"Then, take the $$$ saved in management salaries and pay for the health care, retirement, etc. There may even be money left for R&D to produce some decent"
this is why your on the Internet and not management.
now lets not forget that management cost are nowhere near health care and retirement and r&d cost. the autoworker is the biggest sham in the usa. the united auto workers are getting a free ride, if a company cant cut labor cost it cant be competitive. with cheap labor in Korea and a cheap yen Asia auto company's have advantages built in
Posted by: car fan | 03 March 2006 at 03:53 PM
"a cheap yen"
That's a good one. Twenty years ago it was 260 yen to the dollar. It's now less than half that.
"the autoworker is the biggest sham in the usa."
Another joke.
Posted by: Joseph Willemssen | 06 March 2006 at 07:51 AM