Ah, the joys of trucks… until the next crash.
General Motors Co. (NYSE: GM) dealers delivered 694,638 vehicles in the third quarter of 2018 in the United States, with average transaction prices (ATPs) rising about $700 per unit year-over-year to a new third quarter record of $35,974. (read AutoInformed.com on 2019 Silverado 1500 has Largest Pickup Bed)
But it was more money on fewer vehicle sales. GM total sales plummeted -11% year over year. The third quarter light vehicle SAAR was 17.2 million units in 2017 and 16.9 million in 2018.
GM’s record ATPs – ~$4,000 above the industry average – include strong sales of trucks, SUVs and crossovers, and lower incentive spending. During the third quarter, GM’s incentive spending was below – unspecified how much – the industry average and -2 to -6% percentage points below domestic and some Asian competitors.
“We entered the quarter with very lean inventories of our 2018 model full-size pickups, so we focused on driving a very strong mix of SUVs, crossovers and mid-size pickups,” said Kurt McNeil, U.S. vice president of Sales Operations.
At the end of the quarter, about one-third of GM sales were 2019 models. So, sales mix and product cadence – because GM introduced 2019 models earlier than some competitors – limited incentives, as they will ultimately as competing companies go to newer models.
“The U.S. economy and auto industry remain strong,” said GM Chief Economist Elaine Buckberg. “A new United States-Mexico-Canada trade agreement will reduce uncertainty for the auto industry and all three countries. Consumer confidence is high and rising, thanks to the robust job market, faster wage growth and the boost to take-home pay from tax reform that is about to cause record deficits. We believe 2018 will be the fourth year in a row with total industry sales above 17 million units.”
GM maintains that important new product launches are all on track: Dealers began receiving their first shipments of light duty 2019 Chevrolet Silverado and GMC Sierra pickups in September. During the month, Cadillac dealers also began delivering the first-ever XT4 compact crossover (an AutoInformed road test is upcoming). Late in the fourth quarter, Chevrolet will begin production of the all-new Blazer crossover.
Q3 Highlights vs 2017
- Combined sales of the Chevrolet Tahoe and Suburban and the GMC Yukon full-size SUVs were up 12%. The Cadillac Escalade was up 2%. GM’s mid-size pickups, the Chevrolet Colorado and GMC Canyon, were up a combined 6%. It was the best third quarter for GM mid-size pickup sales since 2004, led by the Chevrolet Colorado, which posted its best-ever third quarter sales.
- The newest crossovers from Chevrolet, Buick and GMC, the Traverse, Enclave and Terrain, were up 3%, 7%, and 14%, respectively. Several passenger car lines posted higher Cadillac CTS and XTS and the Buick Regal and Cascada.
- GM’s commercial deliveries, which grew at an average annual rate of 7% from 2012-2017, were up 8% in the third quarter and up 12% calendar year to date.
- GM’s incentive spending during the third quarter was 12.0% of ATP, according to J.D. Power PIN estimates, below the industry average of 12.1% and -2 to -6% percentage points below domestic and some Asian competitors. GM’s third quarter incentive spending was sharply lower than the company’s first half average, which was 13.6%. Spending was down 1.6% percentage points year over year in the quarter.
- GM’s fleet deliveries, up 5% year over year, were about 21% of total sales during the quarter. More than half of sales were to Commercial and government customers.
- Rental deliveries are on track to be about 10% of total sales for the calendar year, equal to 2017 among the industry leaders.
Q3 GM US Sales Dive -11% to 700,000 Vehicles
Ah, the joys of trucks… until the next crash.
General Motors Co. (NYSE: GM) dealers delivered 694,638 vehicles in the third quarter of 2018 in the United States, with average transaction prices (ATPs) rising about $700 per unit year-over-year to a new third quarter record of $35,974. (read AutoInformed.com on 2019 Silverado 1500 has Largest Pickup Bed)
But it was more money on fewer vehicle sales. GM total sales plummeted -11% year over year. The third quarter light vehicle SAAR was 17.2 million units in 2017 and 16.9 million in 2018.
GM’s record ATPs – ~$4,000 above the industry average – include strong sales of trucks, SUVs and crossovers, and lower incentive spending. During the third quarter, GM’s incentive spending was below – unspecified how much – the industry average and -2 to -6% percentage points below domestic and some Asian competitors.
“We entered the quarter with very lean inventories of our 2018 model full-size pickups, so we focused on driving a very strong mix of SUVs, crossovers and mid-size pickups,” said Kurt McNeil, U.S. vice president of Sales Operations.
At the end of the quarter, about one-third of GM sales were 2019 models. So, sales mix and product cadence – because GM introduced 2019 models earlier than some competitors – limited incentives, as they will ultimately as competing companies go to newer models.
“The U.S. economy and auto industry remain strong,” said GM Chief Economist Elaine Buckberg. “A new United States-Mexico-Canada trade agreement will reduce uncertainty for the auto industry and all three countries. Consumer confidence is high and rising, thanks to the robust job market, faster wage growth and the boost to take-home pay from tax reform that is about to cause record deficits. We believe 2018 will be the fourth year in a row with total industry sales above 17 million units.”
GM maintains that important new product launches are all on track: Dealers began receiving their first shipments of light duty 2019 Chevrolet Silverado and GMC Sierra pickups in September. During the month, Cadillac dealers also began delivering the first-ever XT4 compact crossover (an AutoInformed road test is upcoming). Late in the fourth quarter, Chevrolet will begin production of the all-new Blazer crossover.
Q3 Highlights vs 2017