FOR THE FIRST TIME SINCE 2011, GM’S RETAIL MARKET SHARE TOPS 17 PERCENT FOR THREE CONSECUTIVE MONTHS
DETROIT — General Motors (NYSE: GM) today reported 252,813 deliveries in the United States in October.
- Pickup deliveries totaled 84,902 units, up 9 percent year over year, led by the Chevrolet Silverado and GMC Sierra.
- Crossover deliveries totaled 82,235 units, up 12 percent year over year, driven by the highest October sales ever for five different models: the Chevrolet Equinox and Traverse, the GMC Acadia and the Buick Encore and Enclave.
- Combined Cadillac SRX and XT5 sales were up 17 percent.
- The Chevrolet Bolt EV and Buick Encore had their best months ever.
- Combined Commercial and Government deliveries were up 10 percent year over year, and 11 percent calendar year to date.
Selling-day adjusted sales were up 2 percent. Total sales were down 2 percent, reflecting lower passenger cars deliveries and one fewer selling day year over year.
Retail Share Momentum
Exceptionally strong crossover deliveries at Chevrolet, Buick and Cadillac helped the company achieve an estimated retail market share of 17 percent or more for the third consecutive month. The last time GM delivered three consecutive months at or above a 17 percent retail share was July-September 2011.
Three crossovers reported massive year-over-year retail sales increases for the month: the Chevrolet Traverse was up 59 percent, the Chevrolet Equinox was up 22 percent and the Buick Enclave was up 75 percent. The GMC Sierra pickup also posted a large 23 percent increase in retail sales.
“We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales. In fact, Chevrolet and GMC have some of the fastest-turning crossovers in the industry,” said Kurt McNeil, U.S. vice president of Sales Operations. “The all-new Chevrolet Equinox is off to a great start and we could have sold even more if we had more available. We also see tremendous upside with the launches of the 2018 GMC Terrain, Chevrolet Traverse and Buick Enclave. They are arriving in showrooms at the same time consumer confidence is at its highest level since 2000. Small business optimism has also stayed very high since last fall, and that bodes well for pickup and van sales.”
Customer demand for trucks and crossovers, combined with incentive spending discipline, is driving strong average transaction prices (ATP) for GM vehicles. GM’s October ATPs, which are net of incentive spending, were more than $36,000, about $1,000 per unit higher than the third quarter average.
The GMC brand, which grew total and retail sales during the month, had its highest ATPs ever, driven by the success of Denali models, which reached 30 percent of retail sales.
Supplemental Data
- GM reduced month-end inventory from September and is on track to close 2017 with significantly fewer vehicles in stock than in December 2016.
- Daily rental sales in 2017 are expected to be down about 50,000 units year over year.
- GM’s October incentive spending as a percent of ATP was an estimated 13.5 percent, according to JD Power PIN estimates, down from the third quarter estimate of 13.7 percent. Spending is down about one percentage point from September.
General Motors Co. (NYSE:GM, TSX: GMM) has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, and Wuling brands.
Forward-Looking Statements
This press release and related comments by management may include forward-looking statements. These statements are based on current expectations about possible future events and thus are inherently uncertain. Our actual results may differ materially from forward-looking statements due to a variety of factors, including: (1) our ability to deliver new products, services and experiences that attract new, and are desired by existing, customers and to effectively compete in autonomous, ride-sharing and transportation as a service; (2) sales of full-size pick-up trucks and SUVs, which may be affected by increases in the price of oil; (3) the volatility of global sales and operations; (4) aggressive competition, including the impact of new market entrants; (5) changes in, or the introduction of novel interpretations of, laws, regulations or policies particularly those relating to free trade agreements, tax rates and vehicle safety and any government actions that may affect the production, licensing, distribution, pricing, or selling of our products; (6) our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (7) compliance with laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (8) costs and risks associated with litigation and government investigations; (9) compliance with the terms of the Deferred Prosecution Agreement; (10) our ability to maintain quality control over our vehicles and avoid recalls and the cost and effect on our reputation and products; (11) the ability of suppliers to deliver parts, systems and components without disruption and on schedule; (12) our dependence on our manufacturing facilities; (13) our ability to realize production efficiencies and cost reductions; (14) our ability to successfully restructure operations in various countries; (15) our ability to manage risks related to security breaches and other disruptions to vehicles, information technology networks and systems; (16) our ability to develop captive financing capability through GM Financial; (17) significant increases in pension expense or projected pension contributions; and (18) significant changes in the economic, political, and regulatory environment, market conditions, and foreign currency exchange rates. A further list and description of these risks, uncertainties and other factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and our subsequent filings with the Securities and Exchange Commission. GM cautions readers not to place undue reliance on forward-looking statements. GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements.