GM sport utilities continue freefall in July

By JIM LEUTE ( Contact )   Saturday, Aug. 2, 2008
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— Sales of General Motors’ full-size sport utilities built in Janesville continued their freefall in July, further evidence that consumers are abandoning big trucks in favor of smaller, more fuel-efficient cars and crossovers.

GM dealers in the United States sold 235,184 vehicles in July, down 26.7 percent from July 2007. Car sales were down 12.1 percent while truck deliveries dropped 41.5 percent.

On a calendar-year-to-date basis, Chevrolet Suburban sales are down 31.8 percent, while Chevy Tahoe deliveries are off 27.8 percent. Yukon XL sales have dropped by 39.1 percent, and Yukon sales are down 33.1 percent.

GM released its sales numbers Friday.

In the July-to-July comparison, Suburban sales were down 51.6 percent, while Tahoe sales were down 35.1 percent. Yukon XL deliveries for the month were down 56.2 percent and Yukon sales dropped 40 percent.

“Obviously, the weakness in the truck market persisted in July, yet we continue to hold share due to our fuel economy leadership in many truck segments despite dramatic competitive incentive spending increases,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing.

LaNeve said GM had a strong month with its newest products: Cadillac CTS, Chevrolet Malibu, Saturn Astra, and Pontiac Vibe and G8.

“In addition, we continued to see strong retail demand for our fuel-efficient Chevrolet Aveo and HHR, Saturn Vue and Buick Enclave,” he said. “So, despite an overall weak market, there are pockets of strength.”

LaNeve said GM continues to see momentum in its hybrid vehicles, particularly the Chevrolet Tahoe and GMC Yukon 2-mode SUVs that are built at Janesville’s sister plant in Arlington, Texas.

Still, the July and year-to-date sales numbers continue the trend of falling sales of big, non-hybrid SUVs, a trend fueled by rising gas prices and the shift in consumer demand.

The continuing sales numbers seem to affirm GM’s decision to cut production at its Janesville plant. The automaker said earlier this year that it would cut its second shift in Janesville, a decision followed a few weeks later with the announcement that all production in Janesville would end by 2010 at the latest.

The 1,150 hourly and 130 salaried workers at the plant returned to work Monday after a two-week corporate shutdown in early July was extended by two weeks of non-production.

Workers in Janesville have another five weeks of downtime scheduled through early November, with the likelihood of an additional five weeks through the end of the year.

Across the industry, Japan’s Toyota, which has started pulling away from GM in the race to be the world’s top-selling automaker, posted a 12 percent drop in sales in July while Ford saw a 15 percent decline.

As in June, Honda was the bright spot, with its U.S. sales declining just 1.6 percent.

Material from Gazette wire services was used in this story.







reader COMMENTS (33)
jqpublic
Aug 3, 2008 at 7:46 a.m.
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mymaro: It is the close minded ideas of only supporting American. It is a big world out there and the thought that only we as American's should prosper is exactly why other countries despise us. As for the redneck comment, it shows with how you address other nationalities. "JAPS".

xcatch
Aug 2, 2008 at 11:42 p.m.
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Mymaro, just one question...


Would you rather have profits in America or jobs? This is a fair question as if fewer parts/vehicles are made in America how many Americans are your truly supporting?

mymaro
Aug 2, 2008 at 8:56 p.m.
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so im a "redneck" because I love and support my country and my fellow americans? yeah youre a real piece of work.

mymaro
Aug 2, 2008 at 8:52 p.m.
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jqpublic, typical holier than thou comment. Did I say anything aobut them all being made in America? NO! but the proceeds from the sales stay here in america. Whats with the redneck comment? are you that ignorant?

jqpublic
Aug 2, 2008 at 8:25 p.m.
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mymaro: Typical Janesville Redneck comment! How many GM parts are not made in America?

mymaro
Aug 2, 2008 at 8:04 p.m.
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or was it a camry?

mymaro
Aug 2, 2008 at 7:45 p.m.
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SUPPORT AMERICA, BUY AMERICAN!!!!!!!!!!!!!!!

mymaro
Aug 2, 2008 at 7:44 p.m.
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nowind, I love that story. My CHEVY has NEVER had to be towed. And the toyota was a toyota sequoia. And I could care less about gas mileage, i make enough that i just fill up when necessary. Id rather spend extra on gas and drive a car that the proceeds go to AMERICA than save a few bucks and help support the JAPS! and your comment about the service department is almost to ridiculous to even address. Go look at Harms and see if their department isnt busy.

nowind
Aug 2, 2008 at 6:26 p.m.
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mymaro
I could also note that that Chevy truck has cost you that $1000 many times over in the extra Gas you have put into it over your Neighbors Toyota, Unless it was a Tundra.

nowind
Aug 2, 2008 at 6:23 p.m.
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MyMaro
How many time do you have to tell that story.
If the Chevy's are so perfect and cheep to repair, why is the Service Departments make so much money? Many times more than the car sales.

mymaro
Aug 2, 2008 at 4:41 p.m.
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petcat, you must own a TOYota? My neighbors toyota sure wasnt running when my CHEVY truck had to come and tow it to Harms for over $1000 in repairs. The same repair, if ever necessary, would cost only $250 on my CHEVY.

lil_joe
Aug 2, 2008 at 3:39 p.m.
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petcat
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Are you talking Exploration Rights? The reason they're NOT drilling there is that there's no or not enough oil. That's why the environmentalist controlled Dems ok'd them.
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But they KNOW there's oil in ANWR and these other offshore sites and that's why it can't be allowed. The native Alaskans actually want drilling, it produces jobs the Eskimo's need.

biggirl
Aug 2, 2008 at 2:55 p.m.
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Unfortunately, no one here wants to talk about the CEOs and other executives, who get big packages even if they drive the company into the ground. I grew up in Michigan, and we all knew from the 70s and 80s that small cars would be in demand when gas prices were not artificially low. We also knew that gas prices were artificially low: everyone knew that the demand was rising and the supplies shrinking. Why GM did not develop a subcompact and not a fuel efficient car is beyond me. No, I know why. It's because they were once again shortsighted, once again focused on small-term profits, and once again refusing to make "whimpy" cars that the executives found ummanly. Look at the top ten most fuel efficient cars, and there's only one American car on it. I've always been loyal to American auto-dealers, but it recently became obvious that they've never been loyal to me because they've only cared about their own short-term profits and ego. My next car is going to be a foreign one, and I hope that such a purchase will convince the American automobile companies to begin to compete with the foreign ones on reliability, fuel-efficiency, etc.

Zoom
Aug 2, 2008 at 2:21 p.m.
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The free market, like freedom, isn't free.

Zoom
Aug 2, 2008 at 2:19 p.m.
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No one is preventing you from buying an SUV. In fact, the prices are quit low, and will go even lower. If you don't drive a lot of miles, and actually use them for what they were intended, there are good buying opportunities out there.

rascal
Aug 2, 2008 at 2:12 p.m.
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petcat-- Offshore drilling is but one example of democrats controlled by the fascist environmental movement which wants to tell people what to drive and how to live. Freedom means being able to buy SUVs, These people remind one of the early Nazi party in the 1930s which started controlling every aspect of German citizens lives

snarly
Aug 2, 2008 at 12:38 p.m.
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lil_joe HA HA I was helping out any GM person who would like a good paying job to apply for a job in milwaukee, So if you don't want a job that pay's don't complain.

nowind
Aug 2, 2008 at 11:47 a.m.
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Well Maybe you missed the point of the article.
"GM dealers in the United States sold 235,184 vehicles in July, down 26.7 percent from July 2007. Car sales were down 12.1 percent while truck deliveries dropped 41.5 percent."
While the Maibu and the Cobalt are up they still sold more Silverado’s than the two combined.
Car Sales Down, Truck Sales Down. Show me the upside?
Now what Market Segment were they up in? I found it on the Wall Street Journal. They are up in the Import Car Market. This doesn’t sound good for the American Worker.
They Say they had a strong month in those areas you mentioned but they didn't say they were up, Just like they say they hold a strong Market share in the Trucks but being down 41% does not sound like good news to me.
These guys can Spin better than Politicians

countrydawg
Aug 2, 2008 at 11:33 a.m.
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To say companies have no share means no sales.
.
If and when India starts producing cheap cars even Toyota may be in this situation.

countrydawg
Aug 2, 2008 at 11:20 a.m.
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Maybe you missed this.
.
LaNeve said GM had a strong month with its newest products: Cadillac CTS, Chevrolet Malibu, Saturn Astra, and Pontiac Vibe and G8.

“In addition, we continued to see strong retail demand for our fuel-efficient Chevrolet Aveo and HHR, Saturn Vue and Buick Enclave,” he said. “So, despite an overall weak market, there are pockets of strength.”

LaNeve said GM continues to see momentum in its hybrid vehicles, particularly the Chevrolet Tahoe and GMC Yukon 2-mode SUVs that are built at Janesville’s sister plant in Arlington, Texas

nowind
Aug 2, 2008 at 11:01 a.m.
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Countrydawg
If GM sells 3 trucks to the competitors 1 while the competitor sells 1000 cars to GM's 5 does not mean they are doing a good job.

Like I said before if you had read my entire post, they need to get market share of the Largest market not just the dying market.
Unfortunately this is the problem with any LARGE corporation. It is much easier to turn a kayak than an Aircraft Carrier.

thekid3477
Aug 2, 2008 at 10:58 a.m.
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oil/gas could be cut in half and suburban/yukon sales will still be in the crapper. people know the prices will go back up. put vehicles like these on the endangered species list, cuz theyre headed out the door;)

lil_joe
Aug 2, 2008 at 10:42 a.m.
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Snarly...there's a job opening at RCSD for YOU if you keep for hands to yourself.
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Maybe they'll give you aTV!

snarly
Aug 2, 2008 at 10:16 a.m.
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to all the GM workers there are jobs that pay $20.00 an hour and up BUCYRUS IN MILWAUKEE ALWAY'S HIREING and they have benny good luck.

rascal
Aug 2, 2008 at 10:12 a.m.
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A perfect example of democrats screwing the UAW was yesterday when Pelosi would not allow a vote on off shore drilling They like high gas prices, these elitists from California want to see GM go out of business yet the UAW supports them with tons of money Just think what a drop in oil what do to suburban sales, the possibilities would maybe help Janesville dramatically

countrydawg
Aug 2, 2008 at 10:08 a.m.
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nowind---"yet we continue to hold share due to our fuel economy leadership in many truck segments despite dramatic competitive incentive spending increases,” means they still sold more trucks than the competition.

nowind
Aug 2, 2008 at 8:34 a.m.
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"Obviously, the weakness in the truck market persisted in July, yet we continue to hold share "
A Share of nothing is still nothing GM.
Comments like that show GM still has there head in the sand. They need to figure out how to get the larger market share of the cars that are being purchased, not the ones than no one is purchasing.

staceyt
Aug 2, 2008 at 6:29 a.m.
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to doc0403.....if they take a new job they will lose all benefits with gm, also they are not so great anymore limited to how many office calls per year doing mail order meds it really is not as great as everyone seems to think

doc0430
Aug 2, 2008 at 4:37 a.m.
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Awesome, This is the best way to start the weekend MORE DOOM AND GLOOM~ No matter if you believe it or not on what our fair paper prints and reports, THE SKY IS NOT FALLING!!!!! Life will go on and we need to continue to live our lives the same way we have been, it really doesn't matter what hapens in the next election life will go on as it always has in the past. We have had Demorates that raised taxes and weakened the military and we have had Repulicans as our Presidents over the last 40 years and guess what?, Life has gone on business as usuall, so all I have to say is please people lets get on with our lives and go back to how we where. I know there is going to be people laid off or unemployed from GM,LEAR,and other GM suppliers yet I am sure they will be employed again soon and they will get unemployment checks in the meantime..... I am not saying its the same but it is something, believe it there are alot of jobs out there right now, granted they don't pay $25.00 an hour, but I know for A fact there are $15 to $18 an hour jobs open you GM guys may even be able to start higher if you tell them you don't need benefits because you have those awesome GM bennys! People have faith everything is going to be OK and life will go on....... Now have A great weekend and be with your loved ones.

janesvillean
Aug 2, 2008 at 1:20 a.m.
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And the time bomb they can't escape is all the SUVs on three-year leases that expire in the coming two years.
http://www.businessweek.com/magazine/con...
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Because the lease business depends on the resale value of the vehicles, either to the consumer-lessee or the aftermarket, the whole industry is starting to look like the mortgage business, and the automakers are pulling back as fast as they can. But the oversupply will continue indefinitely because so many were built and demand has plunged.

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