GM Regaining Lost Market Share Ground in October, Edmunds.com Reports
By Michelle Krebs October 16, 2009General Motors is regaining some ground it lost in terms of market share this month, 
according to Edmunds.com.
If the early October trend continues, GM's market share should rise to 22.4 percent this month, a boost from the third-quarter average of 19.1 percent. Based on early October numbers, the Seasonally Adjusted Annual Rate (SAAR) of industry sales will come in at just above 10 million vehicles.
Launches of new models combined with a substantial hike in ad spending this month are helping.
Indeed, GM needs good news on the market-share front since its business plan is based on maintaining a market share of at least 19 percent with half the brands and fewer models, one of its board directors said Thursday.
Board Member Confirms Goal
"The public plan is 19 percent and change. That is what everything is being based on," GM board member Steve Girsky said during a panel discussion at a conference at Columbia Business School, as reported by Reuters. Girsky, an independent consultant and former Morgan Stanley analyst, recently joined GM's 13-member board to represent the United Auto Workers union. He has been an adviser to both GM and the union.
Girsky's comment followed a question on what GM's market share would be in three years. His response marks the first time a GM director addressed the question of market share since the automaker emerged from Chapter 11 bankruptcy with the help of government loans.
Regaining Ground
While GM's market share looks to be getting a bump in October, it should be noted it is rising from a particularly low base. GM's market share has been in decline for decades, dropping about 10 percentage points in the last five years alone.
GM lost ground in the lead up and throughout its Chapter 11 bankruptcy proceedings late last spring, and it didn't enjoy as much of a boost as some of its competitors got from the summer's Cash for Clunkers program.
Regaining ground is the low-hanging fruit, gaining share beyond that will be the challenge. "Continuing to gain share will be increasingly difficult as other manufacturers fight for consumers," said Edmunds.com CEO Jeremy Anwyl.
New Launch Models Considered
GM is in the midst of some very significant -- and seemingly successful -- new product launches. Its new models are drawing praise from automotive critics and are backed by massive advertising dollars.
"GM is benefiting this month from its recent product launches in key volume segments, an abundance of media coverage, including positive reviews of its new models, and a surge in ad spending on its new campaign," observed Anwyl.
Edmunds.com shows GM's new models and its "May the Best Car Win" ad campaign, with its 60-day money-back guarantee, are helping generate customer interest.
More Advertising
This week GM's Bob Lutz, who is now in charge of marketing, told the media the automaker will be spending significantly more on advertising and will be more aggressive in its advertising approach, with more bold comparisons to GM's competitors.
In addition, GM has revealed it is reviewing some of its advertising agencies.
GM will start hearing pitches for select Chevrolet advertising assignments, although long-time incumbent agency Campbell-Ewald will remain the volume brand's agency of record, Advertising Age reported Thursday.
"As Chevrolet moves to expand its global presence it will reach out to a wider range of advertising agencies for new brand and product campaigns," a Chevrolet spokesman told the trade journal.
A week ago, GM announced Cadillac had called for a review for its national and regional dealer creative account and hired Ark Advisors, New York, as the review consultant. Boston-based Modernista has been Cadillac's agency but has opted out of the competition -- Michelle Krebs, Senior Analyst and Editor at Large
Photo by General Motors
The 2010 Chevrolet Equinox is a key vehicle in launch mode this month.
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Great analysis for us who feel attached to the hope for GM's recovery.The new management, as it seems, is walking the talk. BUT how come GMC's new Terrain was not mentioned in your article as its been well accepted by the consumers? Lets not leave one out of the left (only) 4 core brands which is doing its contribution to the overall progress. Edmunds has been down-to-the-facts and sometimes even skeptic on GM's post bankruptcy attempts which i like following with an open mind. Do criticise as an important online medium so that they wont fail again.
I still adhere to the premise that direct comparison advertising can often turn counterproductive, particularly if overexposed and campaigned too long.
Everybody by now knows that a Chevrolet Malibu gets better EPA highway mpg than a Toyota Camry. Yet the Camry outsells the Malibu week in & week out. Why? Because of other perceptions and preconceived notions about the two cars. For many, direct comparisons between competitor-vs-benchmark only serves to reenforce the stereotypes that are \not\ mentioned in the message. "The benchmark is still better, everybody knows that!"
I also am beginning to believe that keeping Buick over Pontiac may have been the wisest choice for the long term. I see a time when more of GM's C-,D- Segment development work will be done in China for GM worldwide. And as the Chinese market continues to expand, GM soon will be able to claim that Buick is the best selling car in the world.
No comparison.
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