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Chevy Cruze posts modest year-over-year November sales increase
LORDSTOWN
Analysts say the Lordstown-built Chevrolet Cruze’s latest sluggish sales numbers are part of an industrywide trend.
According to figures released Thursday by General Motors, the Cruze saw modest year-over-year growth of 2.1 percent for November. The company sold 16,414 units of the compact car last month, compared with 16,073 in November 2015.
It marks the fourth consecutive month the Cruze has posted year-over-year sales increases, but total sales so far for 2016 are down 18.2 percent from 2015.
“They’re in a tough place. They’ve introduced the new car that’s getting wonderful reviews, but the market just prefers sports utility vehicles,” said Autotrader senior analyst Michelle Krebs.
“It’s a very solid product. And you need a compact car in your lineup if you’re a major player,” said Kelley Blue Book analyst Tim Fleming.
The issue, however, is that consumers are gravitating toward trucks and SUVs.
The underselling trend for small cars is what prompted GM to scale back its production of the Cruze. Effective Jan. 23, the Lordstown plant will cut one of its three shifts, which will affect some 1,245 of the 4,500 workers at the GM complex.
Also effective Jan. 23, the Lordstown plant is expected to shut down production for a week, a union official said Thursday.
Union representatives remain in talks with GM to determine the number of workers who will be laid off, UAW Local 1714 President Robert Morales told The Vindicator.
As for the latest Cruze sales numbers, Morales said, “We know the quality of our car and the features it offers to our customers. We’re confident that as our customers go and purchase and get in our Cruzes, they will like them and they will pass on word what a great car it is.”
Overall, GM sold 197,609 vehicles last month to individual – or “retail” – customers in the U.S., up 8 percent from November 2015. The company reported November retail sales drove GM’s U.S. retail share to its highest November level since 2009.
Fiat Chrysler Automobiles reported a 14 percent drop in November sales in the U.S.
American Honda Motor Co. Inc. reported November sales of 122,924 Honda and Acura vehicles, an increase of 6.5 percent over November 2015 sales. American Honda truck sales were up 9.9 percent last month.
Bucking the industry trend for cars, Honda cars posted a 5.6 percent November sales increase.
Ford reported its total U.S. sales were up 5 percent and retail sales were up 10 percent in November, with gains driven by its F-series, SUVs and Lincoln vehicles.
Toyota Motor Sales Inc. reported its year-over-year sales were up 4.3 percent.
Last month had two more selling days than November 2015.
Analysts said 2016 is on track to break 2015’s auto industry record of 17.4 million units sold. So far this year, 15.8 million units have been sold.
“It’s really going to come down to December. It’s going to come right down to the wire,” Fleming said. “I put it at about a 40 percent chance of a new record for the industry.”
Analysts expect a slowdown in 2017, however.