GM Reports December 2005 and Year Results (original) (raw)

Chevrolet Reclaims Industry Sales Leadership for First Time Since 1986 GM Posts Best Full-Size Pickup Sales in Industry Since 1978 GM Continues Luxury Brand Sales Momentum HUMMER Caps Record Year with Best-Ever Monthly Sales; Fastest-Growing Brand in U.S. Saturn Calendar Year Sales Improvement Led by New Vue

DETROIT - GM in 2005 posted several significant records that point to strong consumer acceptance of its new products. Chevrolet, led by strong full-size pickup and launch vehicle sales, was the best-selling vehicle brand in the United States for the first time since 1986. HUMMER had a record sales year and was the industry's fastest-growing brand. Saturn ended the year with improved sales (up 1 percent), setting the stage for 2006, when it will double its product lineup with three all-new vehicles.

General Motors dealers in the United States sold 392,041 new cars and trucks in December, down 10 percent from the same month a year ago. Car sales were down 19 percent and truck sales were off 5 percent. Total sales were up 29 percent compared to November levels. Calendar year sales (4,517,730) were down 4 percent, with car sales off 7 percent and truck deliveries down 2 percent.

"We're thrilled that consumers voted with their pocketbook and made Chevrolet the number one U.S. brand in 2005," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. "But we're not going to spend time celebrating this accomplishment. We're headed right back to the importantbusiness of introducing 19 new vehicles this year and providing buyers with an industry-leading sales and service experience."

Chevrolet's results were paced by full-size pickup sales and the introduction of the new Impala, Equinox, HHR and Cobalt. Over the last five years, driven by consumer response to its revamped product lineup, Chevrolet closed an 850,000-unit sales gap with the competition, a notable accomplishment given the increasingly competitive nature of the U.S. auto industry. Chevrolet's continuing strong truck sales and the introduction of important entry-level vehicles were key to this achievement. Chevrolet's new entry-level vehicles, the Equinox, HHR, Cobalt and Aveo, increased sales by more than 100,000 units in 2005.

GM posted exceptionally strong full-size pickup sales in December and ended the year with 998,654 deliveries, less than 1,500 units below the 1 million-unit sales benchmark. This was the industry's second-best-ever annual sales performance for full-size pickups, falling just short of the previous GM record set in 1978 (1,010,688).

In 2005, GM once again experienced a sales increase for all of its luxury brands. Sales of GM luxury vehicles grew by more than 100,000 units between 2000 and 2005. Cadillac in 2005 had its fourth consecutive year of sales increases and its best sales performance since 1990, led by record CTS, DTS and STS sales. Saab achieved a year-over-year sales improvement in 2005. HUMMER capped record 2005 sales with its best-ever monthly sales and the distinction of being the fastest growing brand in the industry. Positive consumer reaction to the new H3 drove HUMMER's December sales up 112 percent. Calendar-year deliveries were 93 percent greater than last year.

Saturn sales for December were up 13 percent and calendar year deliveries rose 1 percent. The new Vue led this improvement, with sales gains in seven months in 2005. Vue's December sales were up 35 percent and calendar year sales rose 6 percent. Consumers in 2006 will have more choices in the Saturn portfolio, when it doubles its product lineup and introduces three all-new products, the Aura, Sky and Outlook, each featuring Saturn's dynamic and inviting design.

"While December was a difficult comparison for us and other manufacturers, by any measure it still was a solid sales month," LaNeve added. "We're particularly pleased with the recovery in our sport utility and full-size pickup business. It gives us renewed confidence as we prepare to launch new vehicles into these key segments in 2006."

Certified Used Vehicles

Total 2005 sales for GM Certified Used Vehicles, the industry's top-selling manufacturer-certified brand, were a category record 455,498 units, up 1.3 percent from 2004. This marks the fourth consecutive year that GM Certified Used Vehicles set an all-time annual sales record for the segment. GM Certified Used Vehicles posted sales of 38,850 units in December, down 3.6 percent from record monthly results posted in December 2004. Chevrolet continues to be the industry's top-selling single-make certified brand with total 2005 sales of 292,301 units.

December 2005 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Used Cars from Saturn and Saab Certified Pre-Owned Vehicles, were 44,372 units, down 6 percent from last December. Cadillac Certified total 2005 sales were 38,595, up 5.5 percent over 2004. Total 2005 certified GM sales were 532,379 units, comparable to last year's total.

Cadillac Certified Pre-Owned Vehicles posted December sales of 3,332 units, down 8 percent. Used Cars from Saturn sold 1,632 units in December, down 39 percent, while Saab Certified Pre-Owned Vehicles sold 558 units, down 10 percent.

"GM Certified Used Vehicles, the industry's top selling certified brand, set a new annual sales record for the manufacturer-certified pre-owned segment for the fourth consecutive year, up more than 1 percent from last year's all-time high for the category," LaNeve said. "Certified GM brands again led all manufacturers with 2005 sales of 532,379 units, and we look forward to growing our leadership position in the certified segment in 2006."

GM North America Reports December and Fourth Quarter 2005 Production, 2006 First-Quarter Production Forecast Remains Unchanged

In December, GM North America produced 361,000 vehicles (140,000 cars and 221,000 trucks). This is down 39,000 units from December 2004, when the region produced 400,000 vehicles (148,000 cars and 252,000 trucks). Production totals include joint venture production of 24,000 vehicles in December 2005 and 20,000 vehicles in December 2004.

GM North America produced 1.281 million vehicles (483,000 cars and 798,000 trucks) in the fourth quarter of 2005. This is up 3,700 units over fourth quarter 2004 production. In the fourth quarter of 2004, the region produced 1.277 million vehicles (466,000 cars and 811,000 trucks). Additionally, the region's 2006 first-quarter production forecast remains unchanged at 1.25 million vehicles (505,000 cars and 745,000 trucks). In the first quarter of 2005, the region produced 1.183 million vehicles (470,000 cars and 713,000 trucks).

GM also announced revised 2005 fourth-quarter and 2006 first-quarter production forecasts for its international regions.

GM Europe - GM Europe's 2005 fourth-quarter production forecast remains unchanged at 443,000 vehicles. In the fourth quarter of 2004, GM Europe built 442,000 vehicles. GM Europe's revised 2006 first-quarter production estimate is 497,000 vehicles, down 28,000 units from last month's guidance. In the first quarter of 2005, the region built 502,000 vehicles.

GM Asia Pacific - GM Asia Pacific's revised 2005 fourth-quarter production forecast is 482,000 vehicles, up 35,000 units from last month's guidance. In the fourth quarter of 2004, the region built 386,000 vehicles. GM Asia Pacific's revised 2006 first-quarter production estimate is 411,000 vehicles, down 26,000 units from last month's guidance. In the first quarter of 2005, the region built 335,000 vehicles.

GM Latin America, Africa and the Middle East - The region's revised 2005 fourth-quarter production estimate is 189,000 vehicles, down 1,000 units from last month's guidance. In the fourth quarter of 2004, the region built 200,000 vehicles. The region's revised 2006 first-quarter production estimate is 201,000 vehicles, up 4,000 units from last month's guidance. In the first quarter of 2005, the region built 184,000 vehicles.

General Motors Corp. , the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. GM's global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com.

Note: GM sales and production results are available on GM Media OnLine at http://media.gm.com by clicking on News, then Sales/Production. In this press release and related comments by General Motors management, our use of the words "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions is intended to identify forward looking statements. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors that are described in GM's most recent report on SEC Form 10-K (at page II-20) which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among others, the following: changes in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation's new products; significant changes in the competitive environment; changes in laws, regulations and tax rates; and, the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and times planned by management.

# # #