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GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

GM's Ultium EV platform finally shows up in Q3 sales numbers

General Motors has heralded its Ultium battery-electric platform as the future of its passenger car and truck lineup, but for the first two years of its existence, its impact on the marketplace has been virtually nonexistent. Well, that finally changed in the third quarter of 2023, and while the cars based on this architecture don't represent anywhere near the volume of GM's broader combustion portfolio, we're reaching a point where Ultium products are finally in view (and in the hands) of real-world shoppers. At this point, five U.S.-market Ultium models are in production: the GMC Hummer EV, Cadillac Lyriq, Chevrolet Blazer & Silverado EV, and BrightDrop Zevo 600. If you're not familiar with that last one, that's OK; it's a commercial product that you likely won't see on the road for some time. Together, these four combined for 4,257 sales in the third quarter alone — up from 2,663 for the entire first half of the year. While that may not seem like a significant uptick when viewed from altitude, the quarter-to-quarter numbers paint a clearer picture.  Let's toss out the stragglers first. The Chevy Blazer EV, and Silverado EV for example, are barely in production. GM delivered 19 Blazers and 18 Silverados in the third quarter and that's the entirety of their production runs so far. Likewise, GM's BrightDrop Zevo 600 delivery van effectively exists apart from the consumer marketplace, so its contribution of just 35 units can be set aside too. That leaves us the two you've heard of: the GMC Hummer EV and Cadillac Lyriq — models with high sticker prices and long reservation queues.  Through the second quarter (remember, we're talking six months here), GMC sold 49 Hummer EVs. No typo. In the three months that made up the third quarter, GM moved 1,167 of them. Not only is that a dramatic improvement over the first half, but it's more Hummers than GMC sold in the entirety of 2022 (854). Lyriq's improvement was less eye-popping on paper, but after moving just 122 total units in 2022 and 2,013 of them in the first half of 2023, Cadillac managed to up that figure to 3,018 units in the third quarter alone.  GM is betting its short-term EV future on the Ultium platform, so these trends need to continue if that's going to be a profitable wager.

Costco Auto Program adds the Chevy Silverado and GMC Sierra through July

Costco members lean to the Bowtie when it comes to pickups. The big box store wrote that the Chevrolet Silverado "is currently the most requested Chevrolet and pickup truck through Costco Auto Program and has been for the past 11 years. In the 14 years Costco has partnered with Chevrolet for member-only incentives, the Silverado (when included), has been the top selling vehicle every time." Members can rejoice, because just for the months of June and July, the Costco Auto Program has added the Silverado and the GMC Sierra to its Costco Auto Savings Event. Until July 31, 2024, card-carrying shoppers can get an additional $1,000 discount on top of any manufacturer incentives they qualify for when leasing or purchasing new examples of either. The Auto Savings event includes other vehicles as well, the $1,000 incentive applicable to certain other models from Chevy and GMC, as as well Volvo and Cadillac. Tire kickers considering the Polestar 2 can get $2,000 off.  You can check out our write-up on the Costco Auto Program for all the details and the frequently asked questions. The summary is that the store works with "selected" dealers to refer customers to, about 3,000 storefronts across most automotive brands. The program comes with no-haggle pricing for any straight-up purchase. Costco offers customers a research tool to check out vehicles by type and compare specs and features. After a customer zeroes in on a car, it's time to visit the dealership for a chat with an "Authorized Dealer Contact" to examine the vehicle and go over the fine print. Haggling would only arise if the customer has a trade-in; that valuation is between the customer and the dealer. The customer can check out the Costco Member-Only Price Sheet, which "displays your prearranged pricing. The savings can be displayed in one of two ways: One version lists pricing for all models available at the participating dealership; the other will show a VIN-specific price based on the vehicle you select, including any applicable manufacturer incentives or rebates." And for those looking on the battery-powered shelves, the program offers the same $1,000 off the Chevy Blazer EV and Equinox EV.