Chevrolet explains fall
August 18th, 2010 by Richard Aucock
CHEVROLET was a surprise faller in official SMMT new car sales figures with a 66 percent decline.
But MD Mark Terry has told Car Dealer Magazine it’s actually nothing to worry about – because the figures tell a misleading story.
Terry told us that it’s actually because of Chevrolet’s new 5 Year Promise deal, which has just gone live.
‘This has caused some buyers to hold on. We expect September sales to tell a different story.
‘What’s more, we’re also focusing more on retail sales rather than fleet sales. Here, many customers prefer to wait until September, to get a new 60-registration.
‘We’ve thus factored in a quiet period for the next few months, prior to September deliveries.’
It does not mean Chevrolet dealers are quiet. It’s just that the actual car registrations are not flowing through until the new registration series arrives.
This compares with last year, says Terry, where there was a scrappage-influenced rush to get into cars as soon as possible: stock levels meant buyers were pleased to simply get in a car, rather than focus in its reg plate.
It shows, said Terry, the mistake some make in focusing on individual monthly performances, rather than the bigger picture.
‘I could have seen the decline later on in the month, and boosted it up by agreeing to a crazy low-margin fleet deal.
‘That’s not our business though. We’re looking for car sales that will make car dealers money, rather than chasing pure volume at all costs.’
More telling, he added, was the percentage split between retail and corporate sales And the number of preregistrations…
The benefits of this will show both in September, he reaffirmed, when Chevrolet sales are expected to recover, but also in the bottom line for car dealers.
Car Dealer Magazine will watch with interest. In the meantime, what’s your take on the SMMT monthly sales figure cycle?
By Richard Aucock