Automaker General Motors Co. GM released it first-quarter sales report on April 1. The company’s sales slipped during the quarter due to the global uncertainty caused by the Covid-19 pandemic.
Key highlights
The Detroit-based automaker delivered 618,335 vehicles in the first quarter, down from 665,840 vehicles delivered in the prior-year quarter. At quarter-end, inventory stood at 668,443 units, which reflected a decline of 18% over the past year.
In a statement, Kurt McNeil, U.S. vice president of sales operations, said:
“In this uncertain and challenging time, GM and our strong network of dealers are here to help, offering concierge service, providing courtesy transportation to customers in need and offering home delivery where permissible.”
How did the brands fare?
All of the company’s major brands failed to register sales growth.
Cadillac witnessed a sales decline of more than 15%. Sales of the division’s top-selling XT5 sport utility were disappointing at 9.023 units, down 32% on a year-over-year basis. XTS sales also dipped 87% to 473 units.
The Chevrolet brand saw sales fall 3.8% to 435,422 units. The company cited the overall decline to a 17% drop in sales of the Equinox to 73,453 units. On the bright side, sales of Silverado pickups jumped 26.61% to 144,734 units. Furthermore, Chevy Trax sales improved 14.9% to 28,242 units. However, it did not have a favorable impact on the division’s overall quarterly growth.
GMC sales totalled 118,718 units, down 5.5%. The Sierra model did witness year-over-year sales growth during the quarter. However, a 43.31% decline in sales of Acadia (17,686 units sold) and a 36.31% decline in sales of Savana (4,182 units sold) let the automaker down.
Buick’s sales plunged 34.7% to 33,870 units. Encore, the brand’s top-selling vehicle, recorded a sales decline of 42.14% to 14,238 units. Sales decreased roughly 95% for LaCrosse and 64.73% for Regal.
Key developments
GM said that despite the stay-at-home orders in many areas due to the coronavirus outbreak, dealer service operations will stay open to accomodate the critical requirements of vehicles for important service providers such as first responders, health care workers and food supply and delivery workers.
“Customers who need to purchase a new vehicle can use GM’s Shop. Click. Drive. program, which allows them to browse inventory, choose a vehicle, customize their payment and schedule delivery at home where available,” McNeil said.
The automaker has provided OnStar Crisis Assist for buyers of connected cars. In addition, the owners of Wi-Fi-equipped vehicles will be provided with free of charge in-vehicle data.
Disclosure: I do not hold any positions in the stocks mentioned.
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