General Motors (NYSE: GM) today reported June U.S. retail sales of 202,908 vehicles, down about 3 percent from the same period last year. However, in the fastest growing U.S. retail market segment, GM’s crossover retail sales were up 23 percent, due largely to the strength of Chevrolet Equinox, which were up 36 percent. Buick’s U.S. retail sales were up 6 percent.
GM’s U.S. Commercial sales were up 36 percent, for its best June since 2006. Commercial and Government sales were 77 percent of GM’s fleet sales for the month. U.S. daily rental sales were down nearly 11,000 vehicles or 54 percent in June, as planned.
GM’s June total sales were 243,155 vehicles, down about 5 percent from the same period last year.
GM’s mid crossovers, compact crossovers and utilities were up a combined 22 percent on a U.S. retail sales basis compared to the same period last year. This strong performance was carried throughout the Chevrolet, Buick, GMC and Cadillac lineups:
Chevrolet Suburban – up 9 percent
Chevrolet Tahoe – up 15 percent
Chevrolet Equinox – up 36 percent
Chevrolet Traverse – up 71 percent
Chevrolet Bolt EV – delivered 1,425 vehicles.
Buick Enclave –up 10 percent
Buick Encore – up 8 percent
Buick Envision – up 101 percent
GMC Acadia – up 25 percent
Cadillac Escalade – up 14 percent
Cadillac XT5 – up 29 percent
General Motors is in the midst of launching the most all-new crossover offerings into the U.S. market in its history.
“Our crossover renaissance began last year with the introduction of the all-new GMC Acadia and Cadillac XT5, and continued this year with the Chevrolet Bolt EV and Equinox,” said Kurt McNeil, U.S. vice president of Sales Operations. “The all-new Equinox is off to a strong start and we will leverage that momentum as we introduce four additional crossovers in the second half of 2017.”
By the end of 2017, GM will offer customers the U.S. industry’s newest and broadest lineup of crossovers.
“U.S. total sales are moderating due to an industry-wide pull-back in daily rental sales, but key U.S. economic fundamentals clearly remain positive,” said Mustafa Mohatarem, GM chief economist. “Under the current economic conditions, we anticipate U.S. retail vehicle sales will remain strong for the foreseeable future.”
June Business Highlights (vs. June 2016)
According to J.D Power PIN estimates, GM’s incentive spending as a percentage of average transaction prices (ATP) was 12.0 percent in June, equal to our 2016 calendar year average, and lower than any domestic and many Asian competitors.
ATPs were $35,657, up nearly $400 per vehicle.
First Half Highlights (vs. First Half 2016)
GM’s U.S. retail sales are on pace with last year’s performance.
Q2 incentive spend was about 12 percent, down two full percentage points from Q1.
Q2 ATPs are up about $800 over Q1, due to a higher truck/crossover mix and lower incentives.
Crossover retail sales were up 23 percent, the highest first half in GM history.
Buick’s U.S. retail sales were up 8 percent.
Commercial sales were up 8 percent, in a segment that’s down 5 percent.
Government sales were up 1 percent, in a segment that’s down 9 percent.
Daily rental sales were down nearly 31,000 vehicles or 21 percent.
Daily rental sales mix was in a range of about 8 percent, the lowest among full-line automakers in the U.S. industry.
Combined XT5 and SRX sales are up 18 percent year to date, the highest first half for Cadillac crossovers.
Best Cruze retail sales since 2014.
Best Volt retail sales in history.
Best Colorado retail sales since 2005.
Best Traverse retail sales in history.
Best Acadia retail sales in history.
From an industry standpoint, GM expects the second half of 2017 will be stronger than the first half. Pickup and utility sales, GM’s strength, are expected to be stronger in the second half of the year.
June Brand Retail Highlights (vs. 2016)
Chevrolet
Corvette and Cruze were up 4 percent and 3 percent, respectively.
Colorado was up 3 percent.
Equinox had its best June ever.
Crossover sales were up 42 percent.
Silverado total sales are up 2 percent and retail sales are up 1 percent.
Best Silverado month of the year for total sales.
Buick
Lacrosse was up 39 percent.
Crossover sales were up 21 percent.
GMC
ATPs were up $1,067 to $44,539.
Best Denali month ever – over 31 percent of retail sales.
Cadillac
CT6 was up 4 percent.
ATPs were up $2,300 to $56,301.
Guidance on U.S. Vehicle Inventory Levels
We anticipate we will end 2017 with approximately the same day supply of vehicles as we did at the end of 2016 with fewer cars and more trucks and crossovers in the mix.
Pickup and utility sales, GM’s strength, are expected to be stronger in the second half of the year.
We will continue to monitor the marketplace and will make additional production adjustments if needed.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company 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, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com
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; (18) significant changes in the economic, political, and regulatory environment, market conditions, and foreign currency exchange rates; and (19) uncertainties associated with the consummation of the sale of Opel/Vauxhall to the PSA Group, including satisfaction of the closing conditions. 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.
