Gm Feb Sales Counter Critics’ Prediction

General Motors Corp. reported an increase in market share for the month of February in contrast to what some critics in the industry have predicted. Its big trucks rebounded and new vehicles such as the GMC Acadia took off out of the gates. With fuel gains, zero percent loans, fresh product launches, and increasing sales, enthusiasts could not help but wonder whether this could set the new beginning for the automaker.

Surprisingly, GM's sales rose. The 3.7 percent increase in February was fueled by an 11 percent surge in retail purchases. The automaker also picked up a point of market share. From 23.6 percent in February last year, sales came in at 24.6 percent.

The positive spot for the largest automaker was its redesigned pickup truck – the Chevrolet Silverado. The latter saw an increase of 26.5 percent and outsold Ford's F-Series pickups to claim the title of best selling vehicle in the United States.

The Chevrolet Silverado full-size pickup shares the platform of its sibling, the GMC Sierra. According to Autodata Corp, 58,696 Silverados were sold last month. Ford, on the other hand, sold only 55,251 F-Series units.

Another good entry of GM this year is the GMC Acadia, a crossover sport utility vehicle. The vehicle replaced three of the 7/8-passenger vehicles on the Pontiac-Buick-GMC dealership network that covers the mid-size GMC Safari van, the long-wheelbase GMC Envoy XL/XUV, and the Pontiac Montana SV6 minivan.

The GMC Acadia went on sale in December last year. It features a spacious interior, a choice of front or all-wheel drive, MacPherson strut design, BBK cold air intake, aluminum knuckles, direct-acting stabilizer bar, four-wheel disc brakes with ABS, and an remarkable 4,500 pound towing capacity.

The GMC Acadia uses LY7 V6 engine that produces 275 hp and 251 lb-ft. of torque. The vehicle also uses the new 6T75 6-speed automatic transmission that delivers good city and highway fuel economy and brisk acceleration if required.

The Ford Motor Co. reported a 13.4 percent sales decline while the Chrysler Group announced 8.3 percent decrease. The DaimlerChrysler AG, parent of the Chrysler Group, reported 7.7 percent sales slip. "Everyone expected their sales to be down," said Alex Rosten, an analyst with Edmunds.com, a research Web site for car buyers. "Nobody expected their retail to be so strong."

GM ended February with approximately one million vehicles in inventory. Two thirds of the number is truck models. Paul Ballew, GM's chief market analyst said the overall U.S. auto market is on track for a 17-million vehicle year in 2007. "It's fair to describe the industry as operating a bit below trend. But I wouldn't say we're experiencing any further deterioration. Ballew added, “A combination of new vehicles such as the Silverado, GMC Acadia and Saturn Aura sedan, along with free financing incentives rolled out in mid-February helped lift GM's sales.”

Ballew further added that GM expects to trim its second-quarter production schedule by 62,000 vehicles as it continues to pull back on daily-rental sales.