General Motors U.S. February Sales Up 1% as Last Year’s Incentives Are Claimed to have Hurt Results

General Motors today reported total sales of 209,306 vehicles in February, up 1.1% compared with the company’s February 2011 results, which were boosted by high incentive levels. Overall the industry was up almost 16% based on preliminary numbers. A question remains whether GM’s recovery has stalled in the face of a strong seasonally adjusted annual selling rate or SAAR of 13.3 million light vehicles – the best since 2008 before the Great Recession told hold.

GM’s year-over-year incentive spending as percentage of average transaction prices was down 3.5% to 9.5% in February, according to J.D. Power estimates. Incentive spending was down about one-half point from January. GM still has the highest incentive levels in the business, more than $3,200 a vehicle by some estimates, with an industry average of $2,200.

The largest brand, Chevrolet, increased sales by 6% to 151,197 vehicles delivered with a bow tie emblem. GMC was flat at 32,581. Cadillac and Buick had poor a month at 11,505 vehicles (-27.0%) and 14,023(-11.3%) respectively. Cadillac has two new and  freshened vehicle coming later this year.

“Chevrolet’s 6% sales increase, which was driven by new models, as well as a stronger economy, helped GM exceed last February’s remarkably strong result,” said Don Johnson, vice president, U.S. Sales Operations.

GM predicted that industry wide February light vehicle sales will top 1.1 million units, with about 700-800,000 retail sales, due to stronger employment and credit availability, an improving housing market and the recovery in consumer sentiment..

“Commercial sales are a good barometer for the economy,” Johnson said.  “GM’s commercial deliveries increased 35% in February, driven by strong sales of heavy-duty pickups.”

Year-over-year sales of the Chevrolet Silverado HD and GMC Sierra HD were up 28% and 20%, respectively.  Other sales highlights for February include double-digit sales increases for the Buick LaCrosse, which has a 36-mpg eAssist powertrain as standard equipment, the Chevrolet Equinox and Camaro, and the GMC Terrain.