Lack of Corvette Sales Lead to New Incentives
For the second month in a row, sales of the Chevrolet Corvette continue to lag far behind expectations set by last year’s numbers.
In February 2018, Chevrolet reported total sales of 1,351 Corvettes, which is a 35.1 drop in sales YOY as compared with the 2,081 Corvettes sold in February, 2017. Additionally, 1st Quarter Corvette sales are down 29.5 percent compared to total unit sales this time last year – 2,356 units in 2018 versus 3,344 units in 2017 year-to-date.
As before, Chevrolet suspects the decline in sales are driven, at least in part, by the imminent arrival of a mid-engine C8 Corvette. However, these sales number are foreboding given the incentives that Chevrolet has in place at this time to entice would-be consumers to purchase a new Corvette.
Recent negative press related to lawsuits filed against GM for overheating issues with the Z06 Corvette may also be discouraging consumers.
Currently, Chevrolet is offering an unadvertised Flex Cash rebate of $8,000 on new 2017 models and $6,000 on new 2018 models. Additionally, Chevrolet continues to offer the $2,017 incentive on 2017 models. Combined, these rebates can save consumers more than $10,000 off a new 2017 Corvette. (For more information on these discounts, please click here.)
US Corvette Sales by Month and Year
Cadillac Sales up 14 percent in February
DETROIT — General Motors (NYSE: GM) today reported 220,905 car, crossover and truck deliveries in the United States in February.
- Cadillac saw a 14 percent sales increase versus a year ago, driven by the XT5, ATS and the Escalade.
- Since the beginning of 2018, the Cadillac Escalade has gained significant retail market share and posted large increases in average transaction prices (ATPs) despite new competition in the segment. Through February, Escalade retail sales are up 10 percent, retail segment share is up 3 percentage points and transaction prices are considerably higher, rising about $1,400 per unit to more than $82,700.
- Chevrolet’s crossovers were up 7 percent compared to a year ago, with the Equinox, Traverse and Bolt EV posting their best-ever February sales.
- The Chevrolet Suburban and Colorado also had very strong February sales, with deliveries up 28 percent and 7 percent, respectively.
- GMC crossovers were up 19 percent, with the Terrain posting a 17 percent year-over-year increase, and the Acadia was up 22 percent.
- A 6 percent gain for the Buick Enclave, which is all-new for 2018, and a 33 percent increase in Buick car deliveries drove a 1 percent increase for the brand.
- A strong mix of truck and crossover deliveries, a significantly higher mix of 2018 models compared with key competitors and sharply lower incentives year over year helped GM improve ATPs by about $750 per unit, according to J.D. Power PIN estimates.
- Fleet sales were up 7 percent, driven by a 15 percent increase in Commercial deliveries.
Calendar year to date, Commercial deliveries are up 33 percent, due to a combination of strong products, business confidence and tax reform. Much of the gain was in full-size pickup trucks, underscoring the strength of the U.S. economy. Small business deliveries also helped drive sharply higher sales of large vans.
“Consumer confidence is at its highest level since 2000, the economy is strong, our newest products are selling very well and we have successfully managed the transition to the 2018 model year far better than most of our competitors,” said Kurt McNeil, U.S. vice president, Sales Operations. “Customer demand, GM’s new products and upcoming launches are in perfect tune.”
Later today, GMC will unveil its all-new 2019 Sierra and Sierra Denali light-duty pickups. On March 7, Chevrolet will unveil the all-new 2019 Chevrolet Silverado 4500HD and 5500HD, which are chassis cab trucks designed for commercial and small business customers. Later this month, Cadillac will unveil its first-ever XT4 crossover.
Other GM Highlights (vs. 2017)
- GM sales were down 6.9 percent in total and 10 percent on a retail basis compared to an exceptionally strong February 2017. Last year, GM had record sales of crossovers, large SUVs and pickups. The light vehicle SAAR was 17.5 million units, compared with about 17.1 million today.
- GM’s incentive spending as a percentage of ATP was 13.2 percent, down 1.7 percentage points. Incentive spending for GM was down more than $500 per vehicle, while the industry average was down $64. About half of major automakers increased spending.
General Motors Co. (NYSE:GM) has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com
Source: GM Media