GM January 2012 U.S. Sales Down 6%. Revival Stalled?

General Motors (NYSE: GM) today reported total sales of 167,962 vehicles in the United States in January, down 6% compared with January 2011. All four GM brands posted sales declines year-over-year led by Cadillac which was down 29%. Buick was off 23% and GMC declined 10%. Overall the auto industry was up 11.4% for the month, so GM is not keeping pace with the slow recovery of the auto business, a potentially worrisome development if it becomes a trend for U.S. taxpayers who still hold more than 27% of the company.

The seasonally adjusted annual selling rate – SAAR – was a surprisingly strong 14.1 million units, above consensus forecasts that 2012 at sales of 13.5 million units,but it’s not necessarily time to celebrate as ~60% of the total industry increase came from fleet sales. The fact remains the overall market for new vehicles wasn’t as strong as the numbers or the media portrayed. Sales to fleets rose nearly 33% from a year ago; January fleet sales were also up more than 28% from December 2011. This fleet SAAR translated to a whopping 3.2 million units, which was up significantly from both January 2011 and from last month. This is largely a Detroit Three problem, as offshore makers have limited fleet sales.

GM said its share improved compared to December and it wasn’t worried about the declines, and noted that January 2011 sales were boosted by heavy incentive spending that wasn’t repeated. The automotive website edmunds.com reported that GM incentives dropped almost $600 per vehicle to $3,241 year-over-year. Nevertheless GM remains the industry leader in its use of profit sapping incentives.

The bright spot was Chevrolet, which only declined 1%, although passenger cars sales increased 13%, while the industry increased 20%. The beleaguered Volt EV had sales of a mere 603 units, with 137 of those going to fleets.

GM’s total passenger car sales increased 3% in January, led by a 30% increase in sales of fuel-efficient small and compact cars, which include the new Chevrolet Sonic, the strong-selling Chevrolet Cruze and the new Buick Verano.

GM’s crossover sales decreased 18%, sales of trucks, which include full-size pickups, vans and SUVs, decreased 6%. Retail deliveries declined 15 percent compared with the same month a year ago and accounted for 70 percent of GM sales.

In late spring, Cadillac will launch its new XTS large sedan and in late summer, its new ATS luxury sports sedan.  Late in 2012, Buick will launch the new Encore crossover, which made its debut at the North American International Auto Show.