GM's car sales were reduced by no less than 34 percent in comparison with the same period of the last year while truck sales recorded a drop of 51 percent. Obviously, GM's representatives said the main responsible for these “disappointing figures” is the global economic crisis which massively affected both the US economy and the automotive industry.
“The market has been shrinking for three years, but in October we saw a dramatic decline for the industry and GM,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. “ We are obviously disappointed in our results which reflect a difficult comparison with a strong year-ago October performance. More importantly, it also reflects an unprecedented credit crunch that is dramatically impacting the entire U.S. economy – from the housing market to big and small companies to banks to family run businesses.”
But even so, GM's officials claims that they managed to outpace rival companies, with better sales in August and September and similar results in October. “If you adjust for popularity growth, this is probably the worst industry sales month in the post-WWII era,” LaNeve explained.
GM hopes to boost its sales in the last two months of 2008 using the Red Tag Event which starts nationwide on November 4. Basically, GM's new campaign is supposed to offer special deals and price cuts on several GM models until the end of the year.