Chevrolet Sales to Small Businesses Rise Dramatically

DETROIT, Jan. 21, 2011 /PRNewswire/ -- The pessimism of the Great Recession is being replaced by optimism for a growing number of small business owners like Mark Fischer.

Fischer, vice president of Katch Kan USA in Houston, provides support for the oil-drilling industry in Texas, which Fischer estimates saw a 50 percent decline in activity during 2008 and 2009. As industry activity recovered in 2010, it has helped Katch Kan triple in size.

"We have experienced a lot of growth over the past couple of years," said Fischer. "In 2008, we had six employees and two trucks in the field. Last week, we just added an eighth truck to the fleet, a new Silverado 1500, to support 25 employees working in the field 24/7."

Chevrolet sales to small businesses such as Katch Kan USA have increased for three consecutive months. In the fourth quarter of 2010, Chevrolet dealers recorded a 36 percent increase in small business sales, almost three times the increase for the industry, indicating that small business across the U.S. are beginning to reinvest.

In the fourth quarter of 2010, sales to small businesses – those that purchase fewer than five vehicles per year – significantly outpaced the total sales increase for the brand nationally:

"Small businesses put off capital expenditures such as vehicle purchases in order to weather the economic storm," said Don Johnson, GM vice president, U.S. Sales Operations. "With the continuing improvement in consumer spending, and improving profitability of these businesses, we're beginning to see a significant influx of small business buyers to Chevrolet showrooms."

That increase supports findings in a National Federation of Independent Business survey, which found that small business owners' optimism reached its highest level in 2010 during the fourth quarter. The study also pointed toward an increasing likelihood that small businesses will begin hiring in the near term.

Business owners' increased confidence, combined with the increasing age of U.S. vehicles, suggests small-business sales will continue to grow. According to RL Polk and Company, the average vehicle age has increased to 10.2 years through October, 2009 – the first time that the American vehicle fleet has ever been more than 10 years old.  

For example, Sunwest Air Conditioning in Costa Mesa, Calif. recently purchased two new Silverado HD trucks with service bodies to replace older vehicles in their fleet.

"We have nine trucks in our fleet, some with a lot of miles, said Sunwest owner Mark Dalessi. "In the beginning of 2009, we were just happy to have any work. But business started picking up towards the end of 2009, and 2010 turned out to be a decent year. As 2011 is shaping up to be a good year for us, we decided it was time to replace our oldest trucks."

In November, Dalessi bought a Silverado to replace a truck with 250,000 miles. He then bought another Silverado in December, replacing a truck with 200,000 miles.

"We buy our fleet vehicles expecting to drive them until they die," Dalessi concluded, "and we have never had any issues with our Chevy trucks."

Key facts about small business and the U.S. economy:

• In Q4 2010, small businesses increased their employment by 127,000 from Q3 while large business added 14,000 more jobs.
• The Small Business Optimism Index reached 101.3 in Q4, the highest it's been since Q4 2007 indicating a likelihood of hiring by this sector in the short term.
• In Q4 2010, more small firms expected the economy to improve while more expected the economy to weaken in Q1.
• Of small businesses surveyed in Q4 2010, the percentage who say now is a good time to expand reached its highest level since Q3 2008.
• Real personal consumption expenditures increased 0.3 percent in November from October, pointing to strong growth in overall consumer spending in Q4.
• MasterCard Advisors' SpendingPulse showed retail sales, excluding autos, rose 5.5 percent Nov. 5 through Dec. 24, from a year ago. The best increase in 5 years.

About Chevrolet: Founded in Detroit in 1911, Chevrolet celebrates is centennial as a global automotive brand with annual sales of more than 4 million vehicles in more than 120 countries. In the United States, the Chevrolet portfolio includes: iconic performance cars, such as Corvette and Camaro; dependable, long lasting pickups and SUVs, such as Silverado and Suburban; and award-winning passenger cars and crossovers, such as Malibu, Equinox and Traverse. Chevrolet also offers "gas-friendly" solutions, such as Chevrolet Cruze Eco with an EPA-estimated 42 miles per gallon highway, and the Chevrolet Volt offering 35 miles of electric driving and an additional 344 miles of extended gasoline range, according to EPA estimates. Most new Chevrolet models offer OnStar safety, security, and convenience technologies including OnStar Hands-Free Calling, Automatic Crash Response, and Stolen Vehicle Slowdown. More information regarding Chevrolet models, fuel solutions, and OnStar availability can be found at www.chevrolet.com.

About General Motors:  General Motors, (NYSE: GM, TSX: GMM), one of the world's largest automakers, traces its roots back to 1908.  With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in more than 120 countries.  GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands:  Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling.  GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy.  GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.  General Motors acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation.  More information on the new General Motors can be found at www.gm.com.

SOURCE General Motors