[fenwah]

Enclave: 3041
Acadia: 5694
Outlook: 3345

 

[Guest]

Pretty disappointing

More than 2500 off last month's Lambda sales. I wonder what the reason is...

 

[axiama]

No one is buying the Outlook and Acadia and the Enclaves are stuck in production.

 

[rjdriver]

No, Not really disappointing July Historically is a bad sales month........ Too much other stuff going on!

 

[coopermine]

2008 Toyota Highlander, and attractive deals on other outgoing models perhaps?

 

[Canuck]

Admin,

Going to keep the overview chart going?

Ops saw it on another post

Thanks Not my day....

 

[noobie]

If you look at June producttion, they cranked out about 4500 Enclaves compared to about 2500 for July with the vacation shutdown. I assume a 4500 production rate is with overtime. Anyone know what capacity will be with 3 shifts? Even if sales are at 4000 a month, you would think that orders should be filled quickly when the plant is at full capacity. I still think there will be plenty of these around come November and December.

 

[ccaats]

Pretty disappointing

More than 2500 off last month's Lambda sales. I wonder what the reason is...

If I am not mistaken, GM reports monthly sales numbers as being when a vehicle is "produced" at the factory and then shipped to the dealer (my company does the same with equipment). In that case, the "sales" numbers being down in July would make sense because the factory was closed for 2 weeks and couldn't produce or "sell" vehicles. In that case, the numbers are actually "up" since they built 82% compared to June in two weeks(50% of time). Does that make sense?

 

[grd398s]

I don't think that's right ccaats. I was told a "sale" is only a "sale" when the customer takes delivery. I think there is a big backlog of orders, and that's not going to show up on sales figures. They probably sold a little less in July because the initial supply at lots has now been sold and even more people are now having to order their Enclaves rather than just pick one from a lot. All of this seems logical, given that they are adding a 3rd shift. You can't sell what you don't have. I'd LOVE to see the # of orders...not just sales.

 

[ccaats]

I thought I had read somewhere that car manufacturers register a sale as when "dealer takes delivery" because dealers pay for the vehicles upfront BEFORE they sell the vehicle to the consumer. That would explain why the number of vehicles "delivered to dealers" would be down in July because of the shutdown. Maybe I am wrong, just thought I would interject my thought.

 

[EricR]

I thought I had read somewhere that car manufacturers register a sale as when "dealer takes delivery" because dealers pay for the vehicles upfront BEFORE they sell the vehicle to the consumer. That would explain why the number of vehicles "delivered to dealers" would be down in July because of the shutdown. Maybe I am wrong, just thought I would interject my thought.

ccaats is right! As far as accounting goes (which is obviously different than things like warranty coverage, etc.), GM realizes the sale when "title, risk and rewards" have been transferred from GM (to the dealership). The dealer owns the cars on their lots, not General Motors (topics like financing rebates/charges and dealer holdback have been discussed previously on other threads on this forum for those interested). Of course, the dealer realized their sale when "title, risk and rewards" are transferred to you, the proud owner of a new Enclave!
Here's to everyone getting title to and rewards from their Enclaves soon :cheers:

Those seeking substantiation can kindly refer to General Motors annual report: http://www.gm.com/company/investor_information/docs/fin_data/gm06ar/download/gm06ar.pdf

REVENUE RECOGNITION

Automotive sales consist primarily of revenue generated from the sale of vehicles. Vehicle sales are recorded when the title and risks and rewards of ownership have passed, which is generally when the vehicle is released to the carrier responsible for transporting vehicles to dealers. Provisions for dealer and customer sales and leasing incentives, consisting of allowances and rebates, are recorded as reductions to automotive sales at the time of vehicle sales. Incentives, allowances, and rebates related to vehicles previously sold are recognized as reductions to automotive sales when announced. Vehicle sales to daily rental car companies with guaranteed repurchase obligations are accounted for as equipment on operating leases. Lease revenue is recognized ratably over the term of the lease based on the difference between net sales proceeds and the guaranteed repurchase amount. The equipment on operating lease is depreciated based on the difference between the cost of the vehicle and estimated residual value using the straight-line method over the term of the lease agreement. Management reviews residual values periodically to determine that estimates remain appropriate, and if an asset is impaired losses are recognized at the time of the impairment.

 

[Canuck]

So they could have a stock pile of cars at the plant so until they ship them no sales. So plant running has an impact but also transportation/pickup.

 

[mss42]

No one is buying the Outlook and Acadia and the Enclaves are stuck in production.

:ditto: also, aren't they only counting the ones delievered and not the ones ordered?

 

[Canuck]

When one gets ordered and then delivered it's counted. :drunk:

 

[mkaresh]

The vehicles go on GM's financial books as a sale when they're shipped. They get listed as a sale in all the public stats like these only when delivered to the final customer. Still, if inventories are low, the July shutdown would have reduced sales of the Enclave.