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US new light-vehicle sales in total represented an 18.5 million-unit SAAR, the highest monthly sales rate since July 2005 with a 20.6 million SAAR. This refreshing rejuvenation is partly the results of improved social, health and economic conditions under the successful Biden Administration that acted urgently to quell the largest public health crisis in US history that the previous Administration either ignored or promoted. Enjoy the flowers that are coming your way.
Demand exceeding supply – while good for sellers – has its negative side as well. J.D. Power says average incentive spending per unit in April will likely total $3,191, a drop of $1,762 from the highs of April 2020 pandemic shutdown, but off $382 from April 2019. This of course raises the specter of an affordability crisis, which has haunted auto executive offices in the past. Continue reading
GM Posts Formidable First-Quarter 2021 Results
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General Motors Co. (NYSE: GM) today reported Q1 2021 earnings of $2.98 billion boosted by strong price and better model-mix sales in North America, solid credit and residual value performance at GM Financial, as well as effective participation in the auto industry recovery in China, the world’s largest vehicle market.
During a call to media and investors GM said it was confident in its full-year 2021 guidance outlined earlier as it works to manage through the semiconductor shortage, which is negatively impacting all automakers globally. GM said it will lose production of 1.1 million vehicles during 2021, up from an earlier estimate of 200,000 to 400,000. Continue reading →