Chevy works hard to make their vehicles the best on the market, and it shows. As of February Chevrolet is the fastest growing full line brand of automobiles for the eleventh month in a row. Retail sales have increased from the previous year’s rate every month since last April. The trend shows no signs of slowing; in fact, sales are slowly but steadily increasing.
How is Chevy sales (and their parent company, GM) maintaining this growth? GM’s U.S. Vice President of Sales Operations, Kurt McNeil, says the strategy is simple. It rests on four basic principles: focusing on increasing direct retail sales, providing judiciously targeted incentives, decreasing daily rental deliveries, and closely monitoring inventory levels. The company keeps about a 70 day supply of vehicles on hand at any given time, though that number falls to around 67 days during lower demand periods.
Incentive spending has decreased slightly because of the focus on better-tailored deals to customers, but GM still has a robust rewards program. Their incentive spending is 12.4% of ATP, compared with the industry average of 11.1%.
McNeil mentioned that increased demand by Millennials is a major driving force behind the increase in sales. “Millennial” is a term used to describe customers born from the early eighties through the new millennium, a set that spans young people just getting their license all the way through seasoned drivers up to 34 years old. Market surveys show they buy more new cars than any other generation except Baby Boomers. McNeil reported that GM and Chevy have been adjusting their design process to meet this group’s needs, saying, “The economy is growing, Millennials are becoming a major force in the market and we’re doing everything we can to meet retail demand.”
It’s no surprise that Millennials are flocking to Chevy. They’re two and a half times more likely to be early adopters of new technology than non-Millennials, and Chevy has been pushing the boundaries of what drivers should expect from their cars. Take a walk around our showroom in Washington, Michigan if you want to see the result of Chevy’s investment in high-tech features.
For example, nearly every vehicle in the fleet can be outfitted with the OnStar 4G LTE Wi-Fi hotspot. This connection is faster and more dependable than a cell phone. Also, it can handle up to seven devices simultaneously without noticing a slower signal. Connectivity is essential to Millennials, who are the first generation to come of age in the internet era. Many of them use the internet for part- if not all- of their daily workload.
As a group Millennials tend to be more interested in environmental consciousness, useful technology, and features that enhance their lives rather than pointless frills. They want to drive something fun, functional and responsible. GM reports that upgrades to the Cruze, Volt, Camaro, Malibu and Trax have all been made partly in response to these needs.
Some of the features designed to balance efficiency and function are already available. The Duramax 2.8L Turbo-Diesel engine, found in the Colorado and Silverado, is rapidly gaining popularity for its best-in-class fuel economy and towing power. The Colorado can tow 7700 pounds and still gets an incredible 22 miles to the gallon in city and 31 on the highway.
Whether or not you’re a Millennial yourself, you can take advantage of the advances they have inspired. Drop by the Heidebreicht showroom on Van Dyke Road today to test drive the next generation of Chevys.
