G6 and Lacrosse Sales disappointing

[Vintalage]

GM Boosts Incentives, Slows Work On New Models Amid Tepid Sales

DETROIT -- General Motors Corp., already bracing for a tough 2005 because of flagging truck sales, is now showing signs of trouble selling two of the new cars it had been expecting to pick up the slack this year.

The company in the last week or so has increased incentives on the Pontiac G6 and the Buick LaCrosse as a result of sluggish sales, and has prepared to scale back production at the factory that assembles the G6.

GM recently told workers at its plant in Orion, Mich., that it is reducing the number of cars it wants produced each hour and delaying the start of a second shift of production until after the company's annual plant shutdown in July.

The company had planned to start the second shift in the spring.

Paul Ballew, GM's executive director of market and industry analysis, said production is ramping up slowly at the plant because not all versions of the G6 are in the market yet, such as a model with a four-cylinder engine. "We don't get the coupes until the summer, and we don't get the convertible until after that," he said. "We've been delayed in bringing some of the the new versions of the G6 out."

Mr. Ballew said G6 sales are "pretty good" but acknowledged they are "not off the charts." GM expects to sell about 6,000 G6s this month, up from about 4,000 last month, he said.

The slow start of the G6 and LaCrosse sales comes at a difficult point for GM, the world's largest car maker. In 2004, GM lost market share and was forced to cut production as Japanese rivals such as Toyota Motor Corp. and Nissan Motor Co. posted substantially higher sales of mainstream cars. At the same time, luxury-car makers such as BMW AG are expanding further into midprice segments that GM once dominated.

In January, GM said 2005 earnings would fall by about a third to between $4 and $5 a share, as a result of a $1 billion increase in health-care costs, a substantial loss in Europe and lower profit at its financing arm.

It is also suffering from an aging line of pickup trucks and big sports-utility vehicles, such as the Chevy Suburban and GMC Yukon, that normally generate substantial profit. These sales are falling as GM prepares to launch new versions in 2006.

The LaCrosse and especially the G6 were supposed to help smooth the ride in the meantime. The design direction for both vehicles was heavily influenced by GM's vice chairman and product chief, Bob Lutz, who has promised that eye-catching styling would pull new customers to GM brands.

GM has promoted the G6 heavily in TV commercials and got a boost last fall when it was featured on the Oprah Winfrey show. Ms. Winfrey surprised her audience by giving each member a G6, about 100 cars in all, a publicity coup that generated reams of coverage on TV, and in newspapers and magazines.

But few GM dealers had the vehicle on their lots at that time, and complained they were unable to capitalize on the short-term interest at their lots on the weekend following the Oprah Winfrey segment.

Now, inventories of the G6 and LaCrosse are piling up at dealerships. The company currently has a 123-day supply of the G6 -- about double the normal amount. It has enough LaCrosses in inventory to last about 122 days at the current selling rate.

"It's a real competitive segment. We still feel that the G6 sedan has been a successful launch, and it is being well received in the marketplace," said Chris Lee, a GM spokesman.

To boost sales, GM beefed up both general and regional incentives this month on the G6 and the LaCrosse. It is now offering between $1,500 and $2,000 in rebates, depending on the region, or low-interest financing such as 0% interest rates on 36-month loans. Buyers in all regions who trade in cars from competing manufacturers can receive another $1,000.

GM also has given dealers coupons allowing them to cut the prices on the G6 or LaCrosse by up to an additional $1,000, said Mark McCready, director of strategy and marketing analysis for Carsdirect.com.

- LEE HAWKINS JR.
- Wall Street Journal Online

[AMRAAM4]

Maybe a certain someone on here can come in here and explain the difference between how awesome this car [G6] was going to be, who it was marketed at and how well it was going to do..................and what is really happening.


"It's targeted at a slightly older, more financially stable crowd"

"What V6 can get 32mpg?"

"This car is going to sell just as well, and probably better, than the Grand Am. It's time for the Grand Am to be retired"

[Sprucegagt]

Don't hold your breath.

[bigbenSC]

Here's the problem with the G6: simply not enough choices avalible at launch. There was no cheap version and no model to compete with Accord and Altima six cylinders. GM put out the middle of the road version and should expect middle of the road sales. The Grand Am was an incredible value based on sticker price, the G6's sticker is too high. However, I got my G6 lease for less than my payment on my 01 GA. All GM needs to do is slash sticker prices by about $3000 across the G6 line and more people will look at it. Forget the rebates, just offer the car cheap from the start and don't play stupid games. As for the Lacrosse, I'm not really sure what went wrong there, other than the fact that the interior screams old person but the commercials gear it towards younger people.

I guess that is what happens when, you 'Overpromise' and 'Underdeliver'. I don't see the G6 selling as well, as the Grand Am did.

[GrahamKracka]

Even the G6 GTP wont be able to compete very well VS the other cars in the that catagory...since the current G6 is about the same as the the competitions prices...the gtp's price will make it look even more unapealling....Lets face it....cars like the altima 3.5 SE will OWN the GTP

the 3.5 se is them same price as the base G6

More power....better equipped....available with a 5spd (actually its standard)

the G6 got pwned

now lets look at the GTP.....way higher priced than the 3.5 se

about the same power and pretty simalarly eqiupped...yet the altima will be hella cheaper

tho the GTP's more direct nissan competetor is the altima SE-R....much better equipped and 6sp manual..with more power....lets face it...the G6 is outclassed

[Mike3800]

Originally Posted by GrahamKracka

Even the G6 GTP wont be able to compete very well VS the other cars in the that catagory...since the current G6 is about the same as the the competitions prices...the gtp's price will make it look even more unapealling....Lets face it....cars like the altima 3.5 SE will OWN the GTP

the 3.5 se is them same price as the base G6

More power....better equipped....available with a 5spd (actually its standard)

the G6 got pwned

now lets look at the GTP.....way higher priced than the 3.5 se

about the same power and pretty simalarly eqiupped...yet the altima will be hella cheaper

tho the GTP's more direct nissan competetor is the altima SE-R....much better equipped and 6sp manual..with more power....lets face it...the G6 is outclassed

I agree 100%

I will say the LaCrosse is a much better car than the G6.

[GrahamKracka]

werd...i wish they would put that 3.6 in more cars

[GregFarz78]

This isnt a suprise at all...I've been saying all along its overpriced. Maybe more people are wising up to see the quality of an american made car isnt what it used to be

[AMRAAM4]

Originally Posted by GregFarz78

This isnt a suprise at all...I've been saying all along its overpriced. Maybe more people are wising up to see the quality of an american made car isnt what it used to be

Yep...and remember when someone stopped responding to me and a few others when voiced what the consumers really want? We were just told we were troublemakers and didn't know much Guess what, the car isn't selling for the reasons I and others stated...and there is no dealer price gouging or a winter release of a RWD car to blame it on like the GTO fiasco.

[Vintalage]

Originally Posted by Mike3800

I agree 100%

I will say the LaCrosse is a much better car than the G6.

Does this mean I was right all along???

[Mike3800]

Originally Posted by Vintalage

Does this mean I was right all along???

About what? You mean about sales?

I guess you were right. I had thought it would still sell well because of rental fleets etc..., however, I do recall saying that I knew it would not sell as well as Grand Am.

Yep. I guess you were right then.

[bigbenSC]

There is nothing that can't be fixed in a hurry on this car, all it needs is a GTO like horsepower boost and/or a price decrease. The exterior styling is there, the interior is very nice, and the handling is comprable to its peers. All it would take is for the GT to get the 3.9 motor and the GTP to get either the 3.6 with 260+ HP or a blown version of the 3.9. Let a manual be avalible at no cost on each one and you'd have it.

[Mike3800]

Skittles could fall from the sky like in the commercials too.

[kse73]

Originally Posted by bigbengt67

There is nothing that can't be fixed in a hurry on this car, all it needs is a GTO like horsepower boost and/or a price decrease. The exterior styling is there, the interior is very nice, and the handling is comprable to its peers. All it would take is for the GT to get the 3.9 motor and the GTP to get either the 3.6 with 260+ HP or a blown version of the 3.9. Let a manual be avalible at no cost on each one and you'd have it.

I hope youre not holding your breath for this

otherwise you'll end up soon

[bigbenSC]

Nope, sure not gonna hold my breath on this one, but I can dream I guess. I do know that any foreign company would see this as a problem and would act on it in a hurry. GM has shown signs of fixing cars quickly as evidenced after the first year Aztec and GTO. You would think they know that the G6 should be a top priority and should get attention, but maybe not. I bet there are engineers within GM just dying to do what I suggested, but the business guys are holding them back.

I wonder what Spoon's opinion on this is?

[Vintalage]

Originally Posted by bigbengt67

Nope, sure not gonna hold my breath on this one, but I can dream I guess. I do know that any foreign company would see this as a problem and would act on it in a hurry. GM has shown signs of fixing cars quickly as evidenced after the first year Aztec and GTO. You would think they know that the G6 should be a top priority and should get attention, but maybe not. I bet there are engineers within GM just dying to do what I suggested, but the business guys are holding them back.

I wonder what Spoon's opinion on this is?

If GM were a smart company, your ideas would be reality. Unfortuantely, they're caught up with being number one and focusing on purchasing other manufactuers to hold that position. Now, they lost 4 billion dollars with the Fiat fiasco (2 billion in shares and 2 billion to Fiat). That is going to hurt all the brands in some way that GM has under it's belt. Expect cost cutting if not more.

Originally Posted by bigbengt67

You would think they know that the G6 should be a top priority and should get attention, but maybe not. I bet there are engineers within GM just dying to do what I suggested, but the business guys are holding them back.

I wonder what Spoon's opinion on this is?

The 'Beancounters' ruined the G6. The production G6 should have had a closer resemblence to the concept. Instead, they opted a more generic look. The GM engineers have great ideas that never see production, due to those 'BC's'. I'm sure the GM 'TOY BOX' is full of great cars that you would not believe.

GM has other problems too. The GM 'Cash Cows' (Yukon/Denali) have seen a sharp drop in sales. GM's expensive 'Quadra Steer' package sales have tanked. Of course, the hit they took with Fiat.

GM is more concerned with pushing SUV's, than anything else. The G6 was a valiant effort that was reduced by the cost cutting 'BC's. The Cobalt SS could have and should have been pushing at least 230 hp. The LaCrosse is a nice car, but Buick always had the 'Old Man's Car' image and that is hard to shake without serious bucks invested(ex. Cadillac).

[Mike3800]

Originally Posted by KmanGT1

Buick always had the 'Old Man's Car' image and that is hard to shake without serious bucks invested(ex. Cadillac).

...so the cut the Oldsmobile name and kept Buick. .

[RODAN]

It's funny because I was just saying to a friend the other day that the G6 is rare on the road around here. Unlike the launch of the G5 Grand Am, especially after it's appearance in Leathal Weapon 4