The top U.S. automaker, General Motors (GM, Financial), delivered 279,397 vehicles in September, up 12% from the same period last year. Sales of the automaker’s major brands like Chevrolet, Cadillac and GMC increased considerably while those of Buick dropped. Crossovers and trucks were the prime contributors to the company’s monthly sales growth, up 43% and 10%. Retail and fleet sales, too, climbed in September. In contrast, passenger car sales plummeted 11%.
Source: www.goodcarbadcar.net
Here’s a look at the company’s monthly performance in the U.S. market.
How GM’s brands fared
The company’s leading brand, Chevrolet, delivered 151,792 vehicles in September, up 12.1% on a year-over-year basis. Among all of GM’s brands, Chevrolet happens to be the chief source of revenue for the company. Chevrolet constituted approximately two-thirds of GM’s total U.S. retail sales.
Source: www.goodcarbadcar.net
On the other hand, GMC’s September sales gained 9.4% to 47,329 units. Out of these, 40,938 vehicles went to retail customers, a 5.8% year-over-year growth.
Source: www.goodcarbadcar.net
Buick’s sales totaled 16,737 units, down 20% as compared with September 2016. The brand’s retail sales plunged 4.1% to 16,498 units on a year-over-year basis. In contrast, Cadillac’s sales surged 1%. Its retail sales dipped significantly, down 9.6% to 11,847 units.
Retail and Fleet steered GM’s sales
The retail sector happened to be the Detroit automaker’s principal revenue generator as it made up approximately 80% of the carmaker’s total sales. This month’s retail sales totaled 221,078 units which was marginally lower than it sold in August (221,778 units) this year. Nonetheless, the company had the best September in terms of retail sales since 2007. A surge in retail sales can favorably enhance the company’s third-quarter profit margins.
Fleet sales spiked 28.6% to 58,322 units thereby accounting for nearly 21% of September’s sales compared with 18.2% in the same period last year. In the fleet segment, commercial and government deliveries climbed 25% and 38%. The combined retail and fleet deliveries for the month powered GM’s September sales significantly.
Last word
General Motors has gained momentum at the right time. After going through four consecutive monthly sales declines, the company showed resilience and came back strong in August and September with positive year-over-year sales growth. This will give the company a boost to enter the fourth quarter of the year with great zeal and confidence.
The company now aims to expand its portfolio of crossovers. By the end of this year, the American automaker will offer customers a wide range of crossovers – 2018 Chevy Equinox, 2018 GMC Terrain, 2018 Chevrolet Traverse and 2018 Buick Enclave. The company’s year-to-date sales dipped a meager 0.8% to 2,195,502 units while retail sales during the same period plunged 0.7% to 1,778,118 units. With numbers rebounding in the last two months, let’s hope the automaker finishes the year on a positive note.
Disclosure: I do not hold a position in the stock mentioned in this article.
