General Motors Announces Second Quarter Earnings; Edmunds.com Comments
SANTA MONICA, Calif. — August 12, 2010 — With General Motors expected to announce an impressive profit during the second quarter, Edmunds.com, the premier resource for automotive information, presents the following data points:
- Today most GM vehicles sell for an average of 15.7 percent off sticker price; the industry average is 13.7 percent. During first quarter, GM's discount was 13.9 percent and the industry's was 13.2 percent. In second quarter of last year, GM's discount was 16.6 percent and the industry's was 15.5 percent.
- GM dealer inventory is at 47 days to turn, down from 53 in first quarter and from 117 in the second quarter of last year.
- GM's True Cost of IncentivesSM for second quarter is $3,691 per vehicle sold; the industry average is $2,672. GM's incentives have climbed an average of nearly $400 per vehicle since first quarter of this year while the industry average rose only $66 per vehicle sold. This time last year, GM incentives averaged $776 higher than industry average; currently GM averages $1,018 higher.
- Of all new GM financing deals, 14.8 percent are leases; this is the highest lease penetration rate for GM since July 2008.
- Consideration and purchase intent for GM have recently been stable.
GM earnings are being announced amidst much speculation that the company will file for its initial public offering (IPO) within the coming days.
"While the company has good news today, it's hard to look at this data and see a definitive trend. Reestablishing credibility is achieved quarter by quarter," commented Edmunds.com CEO Jeremy Anwyl, who explores the rush to IPO in his blog Just to Clarify at http://justtoclarify.typepad.com/. "They've done a good job one year out of bankruptcy, but the job is not done and competition from Ford, Hyundai, Volkswagen and others is getting more intense."
"We owe GM some credit for coming out of bankruptcy with flying colors, but that really won't matter much if they don't get other elements of their business right," stated Edmunds.com Senior Analyst Michelle Krebs who covers this topic in her report at www.autoobserver.com.
About Edmunds.com, Inc. (http://www.edmunds.com/about/)
Edmunds.com Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web's highest quality car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.