General Motors (NYSE: GM) sold 209,295 vehicles to individual or “retail” customers in June, up more than 1 percent year-over-year, driven by increases at Chevrolet, Buick and Cadillac of 3 percent, 2 percent and 5 percent, respectively. Based on initial estimates, GM gained 0.1 percentage points of retail share in June to remain the fastest growing full-line automaker. GM has gained retail market share in 13 of the past 14 months, dating to April 2015. Less profitable daily rental sales were down 5,690 vehicles or 22 percent, as planned. GM’s total sales in June were down less than 2 percent to 255,210 vehicles.
Through the first six months of the year, GM retail sales are up more than 1 percent and retail share is up 0.4 percentage points, the largest retail share gain of any full-line automaker and more than double the industry’s average over that timeframe. Year to date, Chevrolet retail sales are up 3 percent and retail share has grown 0.5 percentage points. Chevrolet remains the fastest-growing full-line brand in the industry. Year to date, Buick retail deliveries have grown 4 percent and Buick has gained 0.1 percentage points of retail share.
GM’s retail sales strength is reflected in the ongoing sales performance of the Chevrolet Silverado and GMC Sierra full-size pickups. Every month since January 2014, GM has sold more full-size pickups than any other original equipment manufacturer, according to Polk retail registrations and J.D. Power PIN retail sales data. GM is achieving these results while spending less on incentives than its competitors and commanding record Average Transaction Prices (ATPs). In June, GM full-size pickup ATPs were up $3,300 compared to last year and Silverado recorded its highest monthly ATP in history. Year to date, GM full-size pickup ATPs are up $2,600 compared to last year.
“Our retail-focused strategy is resulting in the highest share gains in the industry. Chevrolet is the fastest growing full-line brand and we expect that trend to continue as the availability of newly launched products improves in the second half of the year,” said Kurt McNeil, U.S. vice president of Sales Operations. “Our reduction in daily rental deliveries, disciplined incentive spending and well-managed inventories are showing real benefit in the residual values of our latest launched vehicles.”
GM expects better availability of midsize pickups, full-size pickups and small, compact and midsize crossovers in the second half of the year due to planned production schedules.
As part of its retail-focused strategy, GM continues to reduce daily rental deliveries, as planned. Year to date, GM’s daily rental deliveries are down about 88,499 vehicles or 37 percent from a year ago.
In addition, GM continues to capitalize on a strong, stable economy that is driving sales to small businesses.
“Positive economic indicators like historically low interest rates, stable fuel prices, rising wages and near-full employment provide the environment for strong auto sales to continue in the second half of the year,” said Mustafa Mohatarem, GM’s chief economist. “These positive factors continue to point toward another record year for the industry.”
