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Mayank Marwah
Mayank Marwah
Articles (467) 

General Motors’ November Sales Dip, Despite Strong Crossover Performance

GM looks to build more electric car on account of huge success of Chevy Bolt

December 06, 2017 | About:

The leading U.S. carmaker General Motors (NYSE:GM) posted a sales decline of 2.9% in the U.S. market for November. Total volume stood at 245,387 vehicles. However, the company witnessed robust year-over-year sales growth at major brands such as Buick, Cadillac, Chevrolet and GMC. While retail sales remained flat, fleet sales soared 13%.

General Motors’ average transaction price (ATP) for the month surged more than $650 as compared with the prior month and more than $1,400 as compared with the same period last year. The Detroit automaker’s industry spending was nearly 13% of the ATP. Let’s dig deep into the performance of General Motors.

Source: www.goodcarbadcar.net

How did the brands fare?

Chevrolet sales surged 16% on the back of robust performance of Traverse (up 59% year over year). Chevrolet’s retail sales climbed 2%, which was the best-ever retail November since 2004. The combined strong performance of passenger cars, SUVs and pickups contributed heavily towards retail sales helping the brand to go past industry’s retail sales gain of 1%.

Buick crossover sales improved 20%. The brand’s sales gain was attributable to a 2% sales gain of Enclave. GMC crossover sales spiked 11% powered by strong performance of Acadia (up 4%) and Terrain (up 20%). Cadillac XT5 sales increased 11% year over year.

Chevy Bolt EV is having a dream run

The company sold a total of 2,987 Chevy Bolt EVs in November. For Bolt, November marked the best sales volume ever. Further, Bolt’s sales grew for the eighth successive month on a month-over-month basis. Chevy Bolt was the month’s best-selling electric vehicle, leaving behind Tesla Motors (NASDAQ:TSLA).

Source: www.goodcarbadcar.net

Currently, Chevy Bolt is a big hit in the U.S. market. However, it won’t be too long until rivals Tesla and Nissan (NSANY) catch up. While Tesla is working towards increasing production of Model 3, Nissan is preparing itself to launch an all-new and much-improved version of its own affordable electric vehicle, the Leaf.

General Motors, on the other hand, looks forward to selling all the Bolts that it makes. The company had projected annual production of 30,000 Chevy Bolts, which translate to 2,500 units to be sold per month. The automaker has already sold more than the required number of units for three months in this year and is confident to keep this momentum going.

The company has long-term plans with regards to electric vehicles. CEO Mary Barra said that the company plans to have 20 new electric vehicles by the year 2023. Therefore, Bolt is just the beginning. There is more to come and competitiveness among companies for the electric vehicle market share is expected to rise.

Last word

General Motors witnessed strong growth in both the SUV and crossover segment in November. The company remains optimistic about the last month of the year as it made note of the fact that December volumes are high compared with other months of the year. Furthermore, the company is expected to have lower inventory level at the end of the year as compared with last year’s inventory level.

Disclosure: I do not hold any position in the stocks mentioned in this article.

About the author:

Mayank Marwah
A seasoned writer with keen interest in the automotive, technology, telecommunication, retail and aerospace sectors.

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