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Chevy confident HHR is a hit; automaker now sees annual sales nearing 100,000
JAMIE LAREAU | Automotive News
Posted Date: 9/14/05

DETROIT - Confident that the Chevrolet HHR is a hit, General Motors plans a robust 2006-model production of 100,000 units.

"They've got me on max overtime and running every one I can make," Lori Queen, GM's vehicle line executive for small cars, told Automotive News .

The HHR is built at the Ramos Arizpe, Mexico, plant.

The wagon starts at $15,990 including shipping with the top model in the $24,000 range, a Chevrolet spokesman says.

As GM moves to value pricing - setting stickers closer to transaction prices, often while offering more equipment - the HHR will prove that the strategy will work, Queen says.

During an interview at the Los Angeles auto show in January, Gary Cowger, then GM North America president, said Chevrolet expected to sell 80,000 to 100,000 units annually. In June, GM revised that goal to about 60,000 a year, said Jim Campbell, director of Chevrolet car marketing.

But Queen insists the plan was always to build 100,000 HHRs annually.

"There have been pessimistic buying forecasts, but we're convinced we'll sell every car we can make," she says.

GM started shipping the HHR to auto dealers in late June. In August, 5,760 HHRs were sold, outpacing the Scion xB, but trailing the Honda Element and Chrysler PT Cruiser.
According to J.D. Power's Power Information Network, the largest bloc - 42.7 percent - of buyers were Chevrolet owners.

Ford was the second most frequently traded brand at 11.1 percent, followed by Dodge at 6.4 percent and Chrysler at 6 percent.

"The dealers keep telling us, 'I put one out on the showroom floor, and it sold that night,' " Queen says.

Waiting for vehicles

Queen would not say how many more HHRs will be built this year.

Dealers say they have orders and are waiting for vehicles.

"Give us as many as we can get," says Keith Lang, general manager of Tennyson Chevrolet in Livonia, Mich., told Automotive News.

"Everyone that's come in has gone out the door as soon as we got it."

Lang said he has sold five HHRs since June.

Herndon Chevrolet in Lexington, S.C., has received only two HHRs, says President David Herndon. The dealership sold the wagons to the first customers who test drove them, he says.

"We had them for a day," Herndon says.

Herndon says he'll get another HHR this week, but he has 10 ordered.

Says Ken Mims, sales manager at Larry Puckett Chevrolet in Prattville, Ala., "We had two and sold two. I wish I had some more. The price is very attractive, and it's very well received."

Mims won't get two more HHRs until early next month, he says. Meanwhile, customers are calling him to inquire about the vehicle.

Selling for sticker

According to PIN data, the HHR's average transaction price in August was $20,199.

Dealers say that there is a small margin on the vehicle, leaving little room to cut prices. So they are selling the wagons for sticker price, they say.

Although a Chevrolet spokesman says GM wants the vehicle to appeal to "younger folks," they recognize that older buyers like the wagon.

PIN data show the average age of HHR buyers in August was 49.

http://www.autoweek.com/news.cms?newsId=103170

05GT-O.C.D.

We'll see. It looks like they merged an xB and a PT Cruiser, but they didn't capture the look of either one. The xB has a market niche becuase it's boxy as heck, and very unique - makes a statement. The PT Cruiser has a market niche because of it's custom retro look.
The new Chevy is a good cross, but I don't think it'll capture either market. Instead of being cool w/ personality, I think it'll be another Soccer Mom vehicle.

Kluski

I sw a commercial for the HHR the other day. I forgot what it said, btu it mentioned if you want a change buy an HHR. I found that ironic since it looks so muhc like a PT Cruiser. Therefore, it doesn't seem like much change to me.

k3druid

Saw one at a Cruice Nite Event.

Looked like a PT Cruiser on Crack.

Galaxie

I think the only reason the HHR is doing well is because gas prices are so high. It is a decent alternative for people who want a taller vehicle and want better gas mileage.

Personally I think HHR is a terrible name as well

In my opinion, 100K units is far from a hit, it would be a decent acheivement, maybe fill out capacity at a plant where they build the other cars. This car is far from the segment buster that the Mustang and LX cars from Chrysler are.

future9er24

actually i saw one on the road. didnt look to shabby


then i put my glasses back on :P

THRUST_

I have a hard time believing that they sell as fast as they say, if they do, they won't sell like that for long. There was one at a dealership here (might still be there) parked right out front, it was the only one they had, and it was there for at least a week.