GM Q2 2018 Sales of 758,376, up 4.6%

Discussion in 'GM' started by xcel, Jul 26, 2018.

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  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Very strong truck sales and a wave of all-new crossovers helped General Motors Co. (NYSE: GM) deliver more than 758,000 vehicles in the United States in the second quarter of 2018.

    Second quarter sales at Chevrolet and GMC far outpaced the industry on a year-over-year basis, growing 6 percent and 7 percent, respectively, while industry sales are estimated to be up 1 to 2 percent. Cadillac sales were up 3 percent and GM’s overall sales were up 5 percent for an estimated market share of 16.6 percent, up 0.5 percentage points.

    “Customers are buying with confidence because the economy is strong and they expect it to remain strong,” said Kurt McNeil, U.S. vice president, Sales Operations. “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.”

    Highlights
    • GM’s average transaction prices (ATPs) rose by about $300 year over year to a second quarter record of $35,500 on the strength of new crossovers such as the Chevrolet Traverse and Buick Enclave.
    • Chevrolet saw record crossover deliveries in the second quarter and first half of 2018. It was the best-ever second quarter and first half for the Trax and Traverse, and the best first half ever for the Equinox.
    • Chevrolet and GMC delivered industry-leading pickup sales for the second quarter and first half of 2018. Sales were up 21 percent in the second quarter versus a year ago, and up 12 percent in the first half.
    • Chevrolet and GMC’s clear leadership in the large SUV segment continued, with deliveries up 22 percent in the second quarter versus a year ago, and up more than 10 percent in the first half.
    • Combined sales of pickups, large vans and SUVs increased 18 percent year over year to more than 366,000 units, the highest for any second quarter since 2007. They were up 11 percent in the first half to almost 665,800 units.
    • In the second quarter, the all-new Buick Enclave and Regal were up 25 percent and 42 percent respectively. The Buick Encore had its best second quarter and first half sales ever.
    • The all-new GMC Terrain posted double-digit year-over-year gains for both the second quarter and first half of 2018. It was the best first half ever for the Terrain.
    • Year over year, sales of the Cadillac Escalade increased 1 percent in the second quarter and they were up 4 percent in the first half. XTS deliveries were up 36 percent in the second quarter and 16 percent in the first half.

      Strong U.S. Demand

      The U.S. light vehicle SAAR for the second quarter and first half are both expected to be about 17.2 million units. The outlook for the second half of the year also looks strong, according to GM Chief Economist Elaine Buckberg.

      “Tax reform raised take-home pay, consumer confidence is high and household balance sheets are healthy,” Buckberg said. “All of this plus a strong job market makes consumers more willing to commit to major purchases like vehicles.”

      Gross domestic product is expected to grow more than 4 percent in the second quarter, according to the Federal Reserve Bank of Atlanta, which would make it the strongest second quarter since 2014. In addition, the economy has seen 92 consecutive months of job creation through May, according to the U.S. Bureau of Labor Statistics.

      Chevrolet Traverse Momentum

      Chevrolet’s newest crossover, the 2018 Traverse, stands out as one of the most successful redesigns of any vehicle in the industry this year.
      • Sales in the first half of 2018 increased by more than 17,000 units, year over year.
      • ATPs in the first half increased nearly $7,000 year over year, or more than 20 percent, while the segment average was up just 1 percent.
      • Retail segment share in the first half climbed almost 3 percentage points year over year — the biggest gain of any midsize crossover or SUV.

      “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,” McNeil said. “Of the three, Traverse stands out because it has made huge inroads in such a large and hotly contested segment.”

      Chevrolet Bolt EV Production to Increase More Than 20 Percent

      U.S. and global demand for the Chevrolet Bolt EV has been very strong in 2018, with global sales estimated to be up more than 35 percent year over year in the second quarter and up more than 40 percent in the first half. In response, GM is increasing fourth quarter production by more than 20 percent compared to the average of the first three quarters.

      “Demand for the Chevrolet Bolt EV, especially in the United States, Canada and South Korea, has outstripped production,” McNeil said. “The extra production coming on line should be enough to help us keep growing global Bolt EV sales, rebuild our U.S. dealer inventory and bring us another step closer to our vision of a world with zero emissions.”

      Strong Commercial Sales Growth

      The Commercial segment has been a source of significant growth for GM. Since 2012, sales to these fleet customers have grown 42 percent, which is an average annual rate of 7 percent. Commercial deliveries in the second quarter of 2018 were up 4 percent year over year and up 14 percent in the first half, thanks in part to very strong mid-size and large pickup sales.

      “Commercial customers tell us they prefer to do business with a company that can satisfy all their vehicle needs, and sedans are an important part of the mix because they typically offer very good safety, comfort, fuel economy and a lower total cost of ownership than other vehicle choices,” said McNeil. “Some automakers are scaling back their car offerings at the same time we are investing in the Chevrolet Cruze and Malibu, and expanding our truck and crossover portfolio. We see a terrific opportunity to forge new and stronger customer relationships with such a broad portfolio.”

      Other GM Highlights
      • GM’s incentive spending as a percentage of ATP was 13.4 percent in the second quarter, down from 13.8 percent in the first quarter. The industry average for the second quarter was 11.8 percent.
      • At the end of the second quarter, GM’s dealer inventory was approximately 787,500 units, down 193,000 units versus a year ago.
      • GM’s fleet mix for the second quarter was 22 percent, reflecting strong Commercial demand and higher deliveries to daily rental companies due to the timing of customer orders. For the calendar year, daily rental deliveries are expected to be about 10 percent of total sales, in line with 2017.
     

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