May 2016 auto sales plunge...What's ahead for the Corvette C7?
06-01-2016, 10:13 AM
#1
Safety Car
Thread Starter
May 2016 auto sales plunge...What's ahead for the Corvette C7?
Auto sales for the month of May plunge downward.
With GM sales down 18% and other auto manufacturers in the "red", what will be the figures for Corvette C7 sales? That will be determined in the days ahead.
Will the new GS be able to turn sales of the Corvette around?
Has the market become saturated for the C7 generation with sales well over 100,000 units for 2014, 2015, & 2016 model years?
http://www.cnbc.com/2016/06/01/may-u...-year-ago.html
It will be interesting to see the breakdown of Corvette C7 sales for May. There is no doubt that dealerships have an abundant supply of 2016 models on their respective car lots. How many 2015's still are available as new?
..
With GM sales down 18% and other auto manufacturers in the "red", what will be the figures for Corvette C7 sales? That will be determined in the days ahead.
Will the new GS be able to turn sales of the Corvette around?
Has the market become saturated for the C7 generation with sales well over 100,000 units for 2014, 2015, & 2016 model years?
http://www.cnbc.com/2016/06/01/may-u...-year-ago.html
It will be interesting to see the breakdown of Corvette C7 sales for May. There is no doubt that dealerships have an abundant supply of 2016 models on their respective car lots. How many 2015's still are available as new?
..
06-01-2016, 10:29 AM
#2
Intermediate
April was quite strong according to this: http://www.msn.com/en-us/money/marke...=ansmsnmoney11
I wouldn't read too much into any one month. But with cars like the C7, if there is any hint of a radical new model, people will usually hold off on a purchase. And we wonder why the automakers are so tight lipped.
I wouldn't read too much into any one month. But with cars like the C7, if there is any hint of a radical new model, people will usually hold off on a purchase. And we wonder why the automakers are so tight lipped.
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Skid Row Joe (06-01-2016)
06-01-2016, 10:38 AM
#4
Melting Slicks
"General Motors Co (GM), the largest U.S. automaker, reported an 18 percent drop to 240,450 vehicles from a year earlier. In pickup trucks, sales fell 12.7 percent for its Chevrolet Silverado and decreased 7 percent for its GMC Sierra.
The decline in GM sales was steeper than analysts expected. GM had slowed production at three of its plants that make sedans, which hurt May sales, the company said.
A year ago, the Cruze compact sedan was GM's top-selling car, but its sales fell 30 percent in May. The Malibu midsize sedan gained 13 percent to be the company's best-selling car.
Industrywide, trucks and SUVs remained the U.S. industry's best sellers, to the detriment of traditional sedans."
Probably has more to do with the new cruze coming out. Overall GM is impressing me with some of the new cars, really stepping it up IMO. Car and truck sales have been very hot, month to month numbers mean little. I own GM stock, like the close to %5 div and I think the stock has a decent chance of staying stable to increasing in value.
The decline in GM sales was steeper than analysts expected. GM had slowed production at three of its plants that make sedans, which hurt May sales, the company said.
A year ago, the Cruze compact sedan was GM's top-selling car, but its sales fell 30 percent in May. The Malibu midsize sedan gained 13 percent to be the company's best-selling car.
Industrywide, trucks and SUVs remained the U.S. industry's best sellers, to the detriment of traditional sedans."
Probably has more to do with the new cruze coming out. Overall GM is impressing me with some of the new cars, really stepping it up IMO. Car and truck sales have been very hot, month to month numbers mean little. I own GM stock, like the close to %5 div and I think the stock has a decent chance of staying stable to increasing in value.
06-01-2016, 10:38 AM
#5
Team Owner
I give it a ho hum I mean really I am enjoying my C7 and could care less about monthly sales, inventories, etc. Not in the car business have no GM stock, just a car enthusiast enjoying the ride.
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06-01-2016, 10:40 AM
#6
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Record car sales this spring.......... when you are at the top only one way to go........what do people expect?
06-01-2016, 10:50 AM
#7
Drifting
I could never understand that logic. Does this mean that someone was all set to buy a car but the dealer was closed so they didn't buy one that year? With this logic if dealers were open 24/7, sales would be fantastic.
06-01-2016, 01:29 PM
#9
Team Owner
We should know the May, 2016 sales for the Corvette by Friday.
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Skid Row Joe (06-01-2016)
06-01-2016, 01:32 PM
#10
Team Owner
That's not record sales, as they only built 32,240 2015 models(and some are still sitting unsold on the dealer's lots).
Corvette sales were pretty strong last month(April, 2016) but still 9.4% under the April, 2015 sales.
Last edited by JoesC5; 06-01-2016 at 01:46 PM.
06-01-2016, 01:57 PM
#11
Well, if any drop in sales leads to another conquest rebate for August (right when I need to take delivery), that'll be nice :P
06-01-2016, 02:15 PM
#12
I was reading a report from an analyst a few months back and he expected the auto bubble to burst largely because of causes similar to the housing crash. The desire to sell cars is causing dealers to sell to customers even with poor credit ratings and with especially long terms so that the buyer will inevitably be upside down on the loan, according to him.
06-01-2016, 02:22 PM
#13
Melting Slicks
I did my part and contributed to helping Corvette sales in May!!
06-01-2016, 03:00 PM
#15
Intermediate
Me too!
I think they are in a normal cycle. The pent up demand for C7 was satisfied in 2014 & 2015 and probably at MSRP or above prices.
The rest is bringing new people into Corvettes that maybe aspired, or were considering something else, plus the regular churn of replacing older cars.
Going forward I imagine new sales are largely dependant on introduction of new models (like the GS) or introduction of exciting new colors or features.
They'll run that course until the cycle begins again with an all new C8.
It would be interesting to know what the profitability is during this cycle. Are they making more money on the current lower volume? Or were the big profits on the introductory year?
06-01-2016, 05:27 PM
#16
Same here! 
Corvette sales are not something you can attach any normalcy to. The car is a toy in a limited market and not really needed by anyone. The buyer pool is not endless so a rise in sales when a new model comes out and a drop as the years of that model go by are normal.
The market gets saturated because everyone doesn't need one. They don't wear out (in most cases) so everyone that wants one or can find the one they want, has one, if they can fit it into their other purchases.
Comparing year over year sales of Corvettes is just an exercise in marketing futility.
Corvette sales are not something you can attach any normalcy to. The car is a toy in a limited market and not really needed by anyone. The buyer pool is not endless so a rise in sales when a new model comes out and a drop as the years of that model go by are normal.
The market gets saturated because everyone doesn't need one. They don't wear out (in most cases) so everyone that wants one or can find the one they want, has one, if they can fit it into their other purchases.
Comparing year over year sales of Corvettes is just an exercise in marketing futility.
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jschindler (06-01-2016)
06-01-2016, 07:39 PM
#17
Safety Car
Thread Starter
I exercised my GM Class "A" warrants that expire on July 10th, 2016.
Was able to buy the GM common at $10.00. Current closing PX today was: $30.22
Also, exercised my Class "B" warrants at $18.33 per share with closing PX of GM common today @ $30.22
Not bad. Happy to own the shares at these cost basis.
Was able to buy the GM common at $10.00. Current closing PX today was: $30.22
Also, exercised my Class "B" warrants at $18.33 per share with closing PX of GM common today @ $30.22
Not bad. Happy to own the shares at these cost basis.
06-01-2016, 10:15 PM
#18
Race Director
06-02-2016, 03:19 AM
#19
Me too!
I think they are in a normal cycle. The pent up demand for C7 was satisfied in 2014 & 2015 and probably at MSRP or above prices.
The rest is bringing new people into Corvettes that maybe aspired, or were considering something else, plus the regular churn of replacing older cars.
Going forward I imagine new sales are largely dependant on introduction of new models (like the GS) or introduction of exciting new colors or features.
The newness is wearing off. The model has been out since 14 and the hardcore junkies have gotten theirs. I used to get a hard on when i seen one in the wild but now i don't even look back.
They'll run that course until the cycle begins again with an all new C8.
It would be interesting to know what the profitability is during this cycle. Are they making more money on the current lower volume? Or were the big profits on the introductory year?
I think they are in a normal cycle. The pent up demand for C7 was satisfied in 2014 & 2015 and probably at MSRP or above prices.
The rest is bringing new people into Corvettes that maybe aspired, or were considering something else, plus the regular churn of replacing older cars.
Going forward I imagine new sales are largely dependant on introduction of new models (like the GS) or introduction of exciting new colors or features.
The newness is wearing off. The model has been out since 14 and the hardcore junkies have gotten theirs. I used to get a hard on when i seen one in the wild but now i don't even look back.
They'll run that course until the cycle begins again with an all new C8.
It would be interesting to know what the profitability is during this cycle. Are they making more money on the current lower volume? Or were the big profits on the introductory year?
"General Motors Co (GM), the largest U.S. automaker, reported an 18 percent drop to 240,450 vehicles from a year earlier. In pickup trucks, sales fell 12.7 percent for its Chevrolet Silverado and decreased 7 percent for its GMC Sierra.
The decline in GM sales was steeper than analysts expected. GM had slowed production at three of its plants that make sedans, which hurt May sales, the company said.
A year ago, the Cruze compact sedan was GM's top-selling car, but its sales fell 30 percent in May. The Malibu midsize sedan gained 13 percent to be the company's best-selling car.
Industrywide, trucks and SUVs remained the U.S. industry's best sellers, to the detriment of traditional sedans."
Probably has more to do with the new cruze coming out. Overall GM is impressing me with some of the new cars, really stepping it up IMO. Car and truck sales have been very hot, month to month numbers mean little. I own GM stock, like the close to %5 div and I think the stock has a decent chance of staying stable to increasing in value.
The decline in GM sales was steeper than analysts expected. GM had slowed production at three of its plants that make sedans, which hurt May sales, the company said.
A year ago, the Cruze compact sedan was GM's top-selling car, but its sales fell 30 percent in May. The Malibu midsize sedan gained 13 percent to be the company's best-selling car.
Industrywide, trucks and SUVs remained the U.S. industry's best sellers, to the detriment of traditional sedans."
Probably has more to do with the new cruze coming out. Overall GM is impressing me with some of the new cars, really stepping it up IMO. Car and truck sales have been very hot, month to month numbers mean little. I own GM stock, like the close to %5 div and I think the stock has a decent chance of staying stable to increasing in value.
Last edited by air86; 06-02-2016 at 03:21 AM.
06-02-2016, 05:07 PM
#20
Team Owner
May sales numbers are in.
2,673 Corvettes(2016's and left over 2015's) sold during May, 2016. That is down 23.9% from the 3,514 sold during May 2015.
The Jan-May sales were 12,185, down 21.4% from the same time period in 2015.
There were 24 selling days May 2016, vs 26 selling days in May 2015.
Sales were down 14.9% from last month (Apr 2016).
2,673 Corvettes(2016's and left over 2015's) sold during May, 2016. That is down 23.9% from the 3,514 sold during May 2015.
The Jan-May sales were 12,185, down 21.4% from the same time period in 2015.
There were 24 selling days May 2016, vs 26 selling days in May 2015.
Sales were down 14.9% from last month (Apr 2016).
Last edited by JoesC5; 06-02-2016 at 05:09 PM.