GM’s Batey Says ‘Quality’ Share Barometer of Chevy’s Success

DETROIT – General Motors North America President Alan Batey says growing Chevrolet’s U.S. market share in the coming months will be the ultimate litmus test for whether the automaker successfully raises consumer perceptions of the brand to the same level of its improved products.

“Market share will be the metric,” he tells WardsAuto after introducing the redesigned ’16 Chevy Camaro here earlier today, one of five new or redesigned vehicles from the brand this year as it makes a push in its home market. “But it must be quality market share.”

GM’s volume brand at the end of May controlled 12.5% of the U.S. market, up a tick from 12.4% in the same period last year and good for No.2 behind Ford, according to WardsAuto data.

But while Batey wants the number to grow, he prefers improving the retail side, even if it comes at the cost of overall market share.

“Our overall share may go down in the future,” warns Batey, who also leads the Chevy brand globally. “But that is because we’ll cut back on fleet sales.”

Chevy’s retail share at the end of May stood at 10.3%, equal to year-ago. It retail sales mix is up slightly, to 68.6% from 68.5%, on gains in truck and CUV sales. Overall brand sales are up 3.9% vs. a 4.9% increase for the industry.

Fleet sales, however, are not entirely poisonous to a brand, Batey admits. Rental sales, in particular, put people in Chevy who may be unaware of its recent product improvements.

“Rent-a-car is not a bad business, but if you do it to chase market share bad things can happen,” he says.

Too many fleet sales can flood the market with used vehicles and drive down residual values and brand perceptions, a dynamic Chevy cannot afford when it’s trying to push those measurements in the opposite direction.

Batey’s introduction of the Camaro convertible comes ahead of a “Chevrolet: Powered By Innovation” event in Detroit. The event sees the brand hosting 200 U.S. and international journalists to raise awareness of Chevy’s global activities in design, electrification, powertrain and connected-vehicle technology.

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