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Cruze sales down, GM sales up more than 12 percent
By Kalea Hall
LORDSTOWN
Competition from larger vehicles and an interest in the next-generation model are counted among reasons for the 24 percent drop in Chevrolet Cruze sales in September.
The Lordstown-built compact car in its fifth year of production had 14,032 sales in September 2015 compared with 18,415 last September, General Motors reported Thursday.
Overall, GM posted a 12.5 percent gain in sales in September with 251,310 sales compared with 223,437 reported in September 2014.
“Obviously, we are reaching the end of the cycle, and the numbers are starting to reflect that,” said Glenn Johnson, head of United Auto Workers Local 1112, of the Cruze figures. Local 1112 represents workers in the assembly plant.
Johnson explained the drop shows more people bought larger vehicles, such as trucks or sport utility vehicles, or it says “people are anticipating the arrival of the next-generation Chevy Cruze.”
Robert Morales, president of UAW Local 1714, agreed. Local 1714 represents workers in the fabrication plant.
“It is likely that the public is reading up on it more, and I think that people are simply waiting to purchase,” Morales said. “Why not buy something fresh off of the block?”
But that doesn’t mean the Cruze on the car lots now isn’t a top-notch, quality car, Morales said. When it comes to the competition with larger vehicles, Morales believes there’s “plenty of room for the small-car market to thrive.”
“There are people out there who like a small vehicle and who appreciate a small vehicle,” he said.
The new Cruze, expected to launch in spring 2016, is larger, with 2 inches more in rear legroom. It is 250 pounds lighter to enhance its performance with the 1.4-liter turbocharged engine.
The fuel economy of the new Cruze exceeds that of the previous model with 40 mpg highway compared with 35 mpg highway with today’s model. Connectivity and safety features also have been enhanced.
Analysts believe as long as gas prices remain low consumers will want to buy bigger.
“It all depends on gas prices,” said Eric Lyman, vice president for industry insights at TrueCar. “I don’t know when or where that shift will occur in gas prices.”
TrueCar analysts believe the compact-utility segment will come out on top this year, which is the first time any utility segment will come out on top.
“It has been always been compact or midsize cars,” Lyman said.
It seemed some automakers’ cars made somewhat of a comeback. The Chevrolet Malibu, for example, had a 12.4 percent increase in sales.
“I wouldn’t say it was tremendous strength, but it looks like some of the bleeding has stopped,” said Michelle Krebs, senior analyst for Autotrader, describing the car segment.
Overall, September sales across the industry surpassed analysts’ expectations. September had the added advantage of Labor Day sales weekend and an extra selling day.
Other GM highlights included retail deliveries up 17 percent compared with a year ago, and commercial deliveries increased 10 percent year over year for the 23rd consecutive monthly increase. Total fleet sales dropped 5 percent due to a 12 percent decline in rental deliveries, which is a part of GM’s plan.
Chevrolet saw a 49 percent increase in crossover sales and a 22 percent increase in pickup-truck sales. GMC crossovers were up 20 percent, and pickups were up 32 percent.
Ford Motor Co. reported total U.S. sales increased 23 percent in September with 221,599 vehicles sold. Retail sales also gained 23 percent with sales of 168,522 vehicles.
FCA US LLC reported U.S. sales of 193,019 last month, a 14 percent increase compared with sales in September 2014 of 169,890 units.
American Honda Motor Co. Inc. reported a 13.1 percent increase in September 2015 sales with total sales of 133,750 Honda and Acura vehicles.
Toyota Motor Sales Inc. reported September 2015 sales of 194,399 units, an increase of 16.2 percent from September 2014 on a volume basis.
Volkswagen of America Inc. reported sales of 26,141 units delivered in September 2015, a .56 percent increase over September 2014.
The sales results reflect a midmonth stop-sale for all 2.0L 4-cylinder TDI vehicles due to an investigation by EPA and the California Air Resources Board into emissions compliance.