On Tuesday, automaker General Motors Co. (GM, Financial) posted a 4.6% increase in second-quarter U.S. auto sales to more than 758,000 units, thanks to robust sales of trucks and crossovers. Two of the company’s brands, namely Chevrolet and GMC, registered respective sales growth of 6% and 7%, while industry sales were expected to grow by 1% to 2% over the same period.
Bird’s-eye view
Chevrolet saw stupendous crossover growth in both the second quarter and the first half of the year. The company's newest crossover, the Traverse, saw its sales grow by 17,000 units in the first half of the year. Kurt McNeil, U.S. vice president of sales operations, commented on the brand's performance:
“The Chevrolet Trax, Equinox and Traverse all saw record sales in the first half of the year, which means the brand has three home runs in the industry’s three fastest-growing segments,” he said. “Of the three, Traverse stands out because it has made huge inroads in such a large and hotly contested segment.”
With the increase in U.S. and worldwide demand for Chevy Bolt electric vehicles, the company said it will increase fourth-quarter production by more than 20%.
Cadillac also had a magnificent run as far as crossovers are concerned, with XT5 being the brand’s best-performing model with year-over-year sales growth in 14 of the last 15 months. In addition, GM will introduce XT4, its newest crossover, this fall.Â
Buick sales for the quarter were astounding due to stellar performances of the Enclave and Regal, whose sales surged 25% and 42% respectively. Furthermore, Buick Encore stole the show with record second-quarter and first-half sales as well.
Other highlights of the quarter include the company’s incentive spending, which came in at 13.4% when taken as a percentage of average transaction prices. The Detroit-based automaker’s fleet mix for the quarter stood at 22%, powered by strong commercial demand and higher sales to daily rental companies.
Last word
The company anticipates its seasonally adjusted annualized selling rate to be approximately 17.2 million units. GM’s average transaction price surged roughly $300 in the second quarter as compared to last year. Given the astounding run it had in the second quarter, the company’s guidance for the second half of the year remains robust. McNeil said:
“Customers are buying with confidence because the economy is strong and they expect it to remain strong. GM is in a fantastic position with so many new crossovers at all four of our brands, the industry’s only three-truck pickup strategy and clear leadership in large SUVs.”
Disclosure: I do not hold any positions in the stocks mentioned in this article.
