General Motors Co. (NYSE: GM) can say two definitive things about the Chevy Camaro. One is that sales have trended higher recently. The other is that the price GM charges for the car has fallen.
Source: General Motors Co.
According to an analysis by Kelley Blue Book, Camaro sales were 86,297 last year. Sales for 2013 were 80,567. However, the “average transaction price” dropped to $32,480 from $32,827 in 2013. The mixed trend has improved from 2010, but not much. Sales that year were 81,299, and the average transaction price was $31,016. These numbers are useful to review before the launch of the 2016 Camaro.
The conventional wisdom about the flat sales is that there is too much competition among mid-priced sports coupes. Most notably, this includes the Ford Motor Co. (NYSE: F) Mustang. If that theory is true, Camaro may have to lower prices to quicken sales. According to Akshay Anand, an analyst for Kelley Blue Book:
After the Japanese sports car took over in the 90s, it’s been great to see pony cars come roaring back with style and substance. There has been serious competition between the Mustang, Challenger and now Camaro, and sales numbers have reflected these dogfights. While Mustang has handily outsold Camaro and Challenger in recent months, Camaro should be able to climb back up the ranks with the all-new redesign. The styling has evolved, yet the vehicle still clearly screams ‘Camaro’ even at a quick glance. The all-new Camaro should also be faster with technological enhancements and a lighter body. Here’s hoping the pony car segment continues to thrive.
The latest version of the Mustang has been unusually successful. Mustang sales are up 60% this year to 42,955. Camaro would have to post a large improvement to come even close to the Mustang annualized sales rate. Is price the key to a surge for Camaro? It has not been for a half a decade, during which its best sales year was just shy of 88,000.
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