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Discussion Starter #1 (Edited)
• Sales fell off across all of General Motors' (GM -3.3%) brands during April as the automaker lost a bit of market share to peers. The damage was worse with larger passenger cars.
• Sales by brand: Chevrolet -2.3% to 183,442 units; GMC -0.1% to 47,159; Buick -2.8% to 17,720; Cadillac -29% at 11,236.
• Sales by model: Buick Encore +18% to 6,589; Chevrolet Cruze -32% to 14,153; Chevrolet Equinox -29% at 20,607; Chevrolet Silverado-C/K Pickup +9% to 49,990; Chevrolet Spark -18% to 3,082; Chevrolet Sonic -41% to 5,102; Chevrolet Traverse +6% to 12,186; GMC Sierra +14% to 20,531; GMC Yukon +5% to 3,324.
• GM's average transaction price increased 4.6% Y/Y to $38,768 (via Kelley Blue Book).

• General Motors (NYSE:GM) unit sales -3.5% to 259,557 units vs. -3.0% expected by Kelley Blue Book and -2.3% seen by Edmunds.
• Retail sales increased 3% during the month.
• Commercial deliveries rose 4% off of a 21% increase in government sales.
• GM ended the month with 71 days supply, even with the inventory level from a month ago.
 

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Discussion Starter #3

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So, sell-off the GM stock and buy Tesla.
Tesla stock trades at over 100-times next year's anticipated earnings. Tesla investors are paying $32.70 for every $1 in tangible assets held by Tesla.

By comparison, G.M.'s price to earnings ratio was 4.68 in March.


Cadillac -29% at 11,236
Let's hope Edmunds doesn't get a hold of this, argue a lack of Cadillac buyer loyalty, and have this argument repeated by G.M. mini-executives...
 

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So, sell-off the GM stock and buy Tesla.
Read numbers in the OP post. Average $ sale went up 4.6% but # of sales went down 3.3%. In business, we crack open the champagne when that happens. Fewer transactions, bigger transactions, more income. Staffing req is less, infrastructure is less, yet they make more money.

Tesla = more manhours per car, more facility per car, less profit per car from a year earlier.

The General's health: https://www.gm.com/investors/earnings-releases.html

I see the Cadillac thing as people waiting for the CT6, the need for a fresh SRX, and the industry wide drop in luxury sedans. The SRX, their most popular model took a whopping 60% drop from last April. That's enough to do all the damage.
 

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Tesla has one of the highest margins in the industry. Close to 30%. They don't worry about profit per car, rather the capital expenditures to mass produce enough cars. The only thing that would hurt them at this point is a sudden drop in demand for their cars, or if they went bankrupt before they could start producing the 3, but as can be seen by interest in that model they are OK for now. The entire TM3 launch was a stunt to raise capital by showing interest to investors right before releasing disappointing results and it seems to have worked. They have the potential to make their earnings per share much better.
 

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The important, buried fact above is that retail sales were up 3%. GM has been curtailing fleet sales, which tend to hurt resale values and aren't all that profitable. Other than Cadillac's results, seems like mainly good news to me. Hopefully the XT5 will give Cadillac dealers the shot in the arm they need.
 

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I see the Cadillac thing as people waiting for the CT6, the need for a fresh SRX, and the industry wide drop in luxury sedans. The SRX, their most popular model took a whopping 60% drop from last April. That's enough to do all the damage.
The new XT5 replaces the SRX, and soon we will see the first CT6 PHEVs coming from China, so the numbers will improve.
 

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The new XT5 replaces the SRX, and soon we will see the first CT6 PHEVs coming from China, so the numbers will improve.
You can't even find many gas CT6's. A dealership had me drive down to look at one, but they didn't have one to look at. Aholes.

I do not think the PHEV is going to be a big seller, especially if they don't offer it with a platinum build. A Platinum CT6 PHEV is essentially a Tesla competitor. Better, roomier interior with power reclining rear seats and rear personal infotainment, EV for city driving, gas assist for solid acceleration and range, and probably a more slick version of what Tesla badges as AutoPilot called SuperCruise. Should also have 360° view, digital rear-view, night vision, and maybe HUD (cough, waste of money, cough).

It will be one of the best luxury cars ever produced in Platinum, and if offered with PHEV, also a "green" land yacht. Pure EV for city driving.
 

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GM is shooting for quality (and profit) over quantity at Cadillac. They are trying to push the brand up market. However by doing so they are pushing out some of their legacy customers. It won't be an easy shift.

Of special note the Volt out sold every Cadillac except the SRX in April.
 

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In my humble opinion, Tesla shares are only worth about $100, or at least, that is the most I would pay for them. And to me, GM's shares are worth about $50. Based on that, I know which one I would consider investing in.
 

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GM is shooting for quality (and profit) over quantity at Cadillac. They are trying to push the brand up market. However by doing so they are pushing out some of their legacy customers. It won't be an easy shift.

Of special note the Volt out sold every Cadillac except the SRX in April.
Fortunately for Cadillac, sales in China have been pretty strong. GM may be selling more Caddy sedans in China than in the U.S. I don't have April numbers, but here are Caddy global sales for March:

http://gmauthority.com/blog/2016/04/cadillac-march-2016-sales-results-numbers-figures/
 

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Maybe Cadillac's new offerings will look better in the flesh, but to my eyes their large car styling looks fat, flabby and old. Kind of like your father's Oldsmobile. Time to trash the current motif and create something that looks "new" and better, though please, no Prius-like taillights or boomerang front lights.
 

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There are two monumental shifts happening in Cadillac's portfolio right now, the CT6 launch and the XT5 launch. Until those cars are stocked in inventory and dealers are trained on selling them it'll be hard to get a grasp of current sales rates. The -29% business is an anomaly.

That said, Cadillac is absolutely dead to consumers outside of the Escalade and some RX350 customers looking for a better lease deal with the SRX. Everything else has major discounts and subvented lease specials and the whole brand is a total mess.
 
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