43
Cruze remains competitive in competition-heavy segment
By Kalea Hall
LORDSTOWN
Don Brady thinks everyone should have a Cruze in the driveway to support Ohio auto manufacturing — especially since it is built right here in the Mahoning Valley.
“The Cruze is obviously my heartbeat,” said Brady, general manager at Columbiana Buick Cadillac Chevrolet. “It is our hottest car.”
October was a top-selling month for Columbiana and was the best October for the Cruze since it went on the market with 24,289 sold compared with 16,087 in October 2013, a 51 percent increase, which drove GM’s compact-car sales to their highest level since 2003.
The 2015 Cruze was sent to market in late September/early October. It comes with a face-lift and access to 4G LTE with available Wi-Fi.
“We just had the best October the store has ever had,” Brady said. “The incentives are the best they have ever been on the 2014s.”
Kelley Blue Book senior analyst Alec Gutierrez said incentives on the Cruze went up from about $1,900 this time last year to $2,600, which helped them to be set apart from the rest of the cars in a very competitive segment.
Honda Civic had an $1,800 incentive per unit, and the Ford Focus had $2,500 per unit, Gutierrez said.
David Sabolsky, general sales manager of Spitzer Chevrolet, said the average incentive on the 2014 Cruze was $2,500.
“GM is aggressive and looking to move product,” Sabolsky said.
New incentives will be released today, Sabolsky said.
Spitzer sold 37 Cruzes in October.
GM “is doing a fantastic job of marketing” the Cruze, said Glenn Johnson, president of United Auto Workers Local 1112. “It is just refreshing and great for the Valley.”
The Cruze’s strength in October came as a surprise to TrueCar analyst Eric Lyman.
“We have seen increased competition in this segment,” he said.
The compact-car segment also has been competing against the sport utility vehicles, pickup trucks and crossovers. Low gas prices, high consumer confidence and a stabilizing economy are reasons for the increased demand for the larger vehicles, analysts said.
Gutierrez stressed that low gas prices may have had an impact on demand, but they have “added a little fuel” to the fire that already was roaring with demand.
Overall, GM posted the best October U.S. sales since 2007 with 226,819 vehicles delivered. Chevrolet sales were up 0.5 percent from last October with 155,965 units delivered and up 3.1 percent so far this year compared with last year. GM says this is because of the strength of the Silverado, Cruze, Traverse and Equinox.
The Chevrolet Silverado was up 10 percent with 46,966 units delivered.
J.D. Power’s Power Information Network estimates reported GM’s average transaction prices reached a record $34,700.
GM’s fleet sales were up 6 percent.
American Honda Motor Co. Inc. reported total October 2014 Honda and Acura vehicle sales of 121,172 units, an increase of 5.8 percent from October 2013.
Ford Motor Co. U.S. sales totaled 188,654 vehicles in October, down 2 percent from a year ago.
Chrysler Group LLC reported U.S. sales of 170,480 units, a 22 percent increase compared with sales in October 2013.
Toyota, Scion and Lexus reported total October 2014 sales of 180,580 units, an increase of 6.9 percent from October 2013.