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Sales of Valley-built Cruzes tumble 39%
youngstown
Sales of the Lordstown-built Chevrolet Cruze have take a hit a year after taking advantage of supply issues for foreign automakers Toyota and Honda, because of a Tsunami, to reach record sales levels for the vehicle.
There were 14,954 Cruzes sold in July, a 39.3 percent decrease from the 24,648 sold in July 2011, according to GM.
Through the end of July sales are down 12.7 percent from 147,620 in 2011 to 128,838 this year.
The Cruze is facing internal competition right now. GM is trying to remove 2012 Chevrolet Malibus from the lot to make room for the 2013 Malibus, said Glen Johnson, president of UAW 1112. The company has heavy incentives on the 2012 Malibu.
“The biggest issue the Cruze is facing right now is that people going onto the lot looking for a Chevy are facing the decision of buy a Cruze or paying just a little more of a 2012 Chevy Malibu,” he said. “I think things will get back to normal once those 2012 Malibus are off the lot and we get our Chevy price range back to ourselves.”
There is no issue with the number of Cruze being produced. There is also no truth to rumors that the GM plant in Lordstown is preparing to remove the third shift, Johnson said.
The Asian-based competitors are back and there are new entries into the Cruze segment of vehicles, said Tom Mock, communications manager for GM at Lordstown and Parma.
“We’re off our 2011 highs but we have retained our brand building discipline,” he said. “Cruze incentives and fleet sales are low, especially compared to our competition. This helps enable strong transaction pricing and enhances Cruze long-term image and resale value.”
Johnson said he does not believe it is external competition that is reducing sales nor does he believe the problem has been caused by more types of small vehicles being produced.
“This has always been a very competitive segment,” he said.
General Motors Co. reported overall July U.S. sales of 201,237 vehicles, which is down 6 percent compared with a year ago. Sales to retail customers declined 3 percent. Sales to rental fleet customers declined 41 percent. The fleet decrease was in line with previous estimates from the company.
GM’s combined retail sales of mini, small, and compact cars, which would include the Cruze, were up 41 percent year over year.