Good news from GM on a variety of fronts. First, the Cruze launch seems to be on track. Then they beat our forecast for October sales by over 14,000 units. (Fleet probably helped, but hey, a sale is a sale.) Next, GM’s incentive spends—historically a weak spot—in October continued to decline (By over $75 per vehicle.)
Helping reduce incentives, GM in October had one of the “best” mixes of 2010 to 2011 vehicles in the industry. 72% of the vehicles sold were 2011 models. I hedge a bit when saying “best,” as this is good from the perspective of a car companies' profits. It can also mean that deal-seeking consumers—looking for a 2010—have to shop elsewhere. Any lost sales from this would have to be regarded as a high-grade problem.
Finally, are expected to announce impressive Q3 earnings.
All of this is nicely orchestrated to the beginning of the IPO road show.
And about that IPO. I would still like to have seen a few more good quarters behind them. Plus, the management team is gelling—again. But these are quibbles. As vehicles continue to rebound, GM should continue do so as well.
Good news for potential investors.