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General Motors expert at Automotive News Mike Colias recently wrote an interesting article about sales of the Chevrolet Impala in 2013 which I thought I would mention here because this is an interesting ‘profit over volume’ story that we have seen pop up here and there lately notably at Renault in France. The 2014 Impala will go on sale this April in the US, but instead of shooting up as a result, expect sales of the model to take a deep dive for the rest of 2013. Why?
Simply because General Motors has vowed to restrict less-profitable sales to fleet and rental companies and target the retail end of the market, in other words the ‘real consumer’, much more profitable. A whopping 75% of the 169,351 Impalas sold last year went to fleet buyers and rental agencies, a ratio General Motors wants to reduce to 30%, trying to execute a 180-degree turn from the rental-car special that the once-proud nameplate has devolved into over the past decade.
This is a total turnaround for the model and sales will suffer. If GM is true to its prediction and even if retail sales of the Impala increase by 50% year-on-year in 2013 (which would be an outstanding achievement) we would arrive at 64,000 retail and 91,000 total sales, down a disastrous 46% on 2012. The temptation is high for carmakers to bump up volume as this is the first data point communicated each month as you all readers of BSCB know very well. But is GM fooling itself?
See the full article below.