Seeking Alpha

U.S. auto sales: Industry prices lower, but don't blame GM

  • The average transaction price for a vehicle sold in the U.S. fell 2.2% M/M and 0.8% Y/Y in June, according to Truecar.com.
  • Perhaps a surprise given the overload of recall news, but General Motors (GM) was the automaker which showed the biggest increase in average transaction price over the last year (partially due to mix). Ford (F) and Toyota (TM) also scratched out gains, while Nissan (NSANY) and Volkswagen (VLKAY) went in the other direction.
  • GM's level of incentive spending was also 11.9% lower than a year ago.
  • Hyundau (HYMLF) increased incentive spending by 43% to over $2K per vehicle in an effort to defend market share.
Comments (9)
  • JDoe20
    , contributor
    Comments (677) | Send Message
     
    I'm sure we will see the professional GM bashers comment here how wrong they were on avg transaction size and incentive spending for GM. GM has beaten the avg market price while at the same time correcting their old GM corp culture and consumers are taking notice and buying their products.

     

    This should be good for the country since "as goes GM, so goes the nation".
    Long GM, F
    1 Jul 2014, 01:33 PM Reply Like
  • J38765
    , contributor
    Comments (369) | Send Message
     
    Game, Set, Match.... That was a historic performance. How much discipline did it take to reduce incentives in the middle of all that GM is facing. I am beginning to think that Ms. Barra is that rare executive that does what is right regardless of the consequences, does not worry about the short term results and keeps her eyes focused on the long term goal. That was a gutsy move!
    1 Jul 2014, 02:17 PM Reply Like
  • User 26022023
    , contributor
    Comments (23) | Send Message
     
    I am a little disappointed that sadsad isn't here to somehow disparage the facts. Maybe the bashers are taking a day off.
    1 Jul 2014, 02:32 PM Reply Like
  • patrickbec
    , contributor
    Comments (39) | Send Message
     
    Dude, you just beat me to it! Where is funfun when I'm having fun??
    1 Jul 2014, 03:51 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Shorts were a bit sadsad today methinks.

     

    1980XLS saving up bankster like gains for this.

     

    http://bit.ly/1rURPl6

     

    Notice the Start Button, LOL!

     

    http://bit.ly/1rUSaEr

     

    Cadillac, the return to the "Standard of the World"
    1 Jul 2014, 05:03 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Premium products command premium pricing.

     

    Go Mary!.

     

    http://bit.ly/1hTtZA6
    1 Jul 2014, 05:12 PM Reply Like
  • jzarra
    , contributor
    Comment (1) | Send Message
     
    Just remember the average age of cars on the road as at an all time high of over 11 years. Every time there is a recall it brings GM car owners into the dealership.

     

    While they are waiting for their cars to get fixed then enter into the show room with their free cup of coffee and the salesman has them.

     

    They are all potential buyers and GM has more entering their show room than any other automaker
    1 Jul 2014, 06:44 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    Jzarra - ethusiasm is commendable but in the last sentence,
    stretching the truth less so.

     

    There are recurrent comments about the credit quality of some GM buyers =
    too many appear to have JUNK rating.
    1 Jul 2014, 11:05 PM Reply Like
  • lemm
    , contributor
    Comments (600) | Send Message
     
    Budavar,I have asked you this before, do you have any proof that GM is giving more loans to people with junk credit ratings than the other auto makers? If so let us see it.
    2 Jul 2014, 09:06 AM Reply Like
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