DETROIT, July 2, 2019 /PRNewswire/ -- General Motors
Co. (NYSE: GM) delivered 746,659 vehicles in the United States in the second quarter of
2019.
- Crossover sales set a new second quarter record after sales
grew year over year by 17 percent.
- Sales of the Chevrolet Silverado 1500 crew cab and GMC Sierra
1500 crew cab were both up 12 percent year over year.
- The Chevrolet Equinox and Traverse and GMC Canyon all
delivered record second quarter sales.
- Sales of every Buick crossover were up year over year, with the
Envision posting a 28 percent sales increase. The Enclave was up 21
percent and the Encore was up 5 percent.
- Buick deliveries were up 5 percent and GMC deliveries were up
10 percent.
- The all-new Cadillac XT4 continues to lead its segment and the
all-new Cadillac XT6 has begun shipping to dealers. Cadillac
crossover deliveries were up 19 percent in total year over year,
helping the brand grow both total and retail sales.
- The Chevrolet Suburban, Tahoe and GMC Yukon XL were each up
more than 20 percent compared to a year ago.
Overall, GM deliveries during the second quarter were down 1.5
percent versus a year ago, in line with third-party estimates for
industry sales. The company estimates that its retail market share
was even with a year ago, with truck and crossover deliveries
offsetting lower passenger car sales.
Industry Momentum
The U.S. light-vehicle SAAR for the first half of the year is
expected to be a healthy 17.0 million units, according to GM Chief
Economist Elaine Buckberg.
"The U.S. economy continues to grow at a healthy pace. Jobs are
plentiful and inflation remains low," said Buckberg. "Auto demand
was better than anticipated in the first half and we expect strong
performance in the second half of the year. If the Fed cuts rates,
as widely expected, lower financing costs will provide further
support to auto sales."
More Truck Capacity, More Crew Cabs, More Diesels
Starting this quarter, GM will lead the industry and begin
breaking out deliveries of its full-size light- and heavy-duty
pickups to give investors and other stakeholders a clear view of
the company's sales performance in these vibrant segments.
"The light-duty segment is the highest-volume part of the pickup
market and we are expanding choice to make sure that we meet the
needs of every customer," said Kurt
McNeil, U.S. vice president, Sales Operations. "Heavy-duty
trucks, by contrast, are about 25 percent of full-size pickup
sales. Our HDs are purpose-built machines for people who need
maximum capability, and we are poised for significant growth."
Light-Duty Launch Update (Chevrolet Silverado 1500, GMC
Sierra 1500)
- GM has installed new body shops, upgraded paint shops and
reconfigured general assembly at its plants to increase capacity by
20,000 units compared with the outgoing model.
- Based on the most recent data available, retail customers have
registered more GM full-size light-duty pickups in 2019 than either
Ford or Ram. GM light-duty registrations have also led Ford F-150
in 11 of the last 12 months.
- The first new GM models to launch were the Chevrolet Silverado
and GMC Sierra crew cabs in late summer 2018. Sales of each were up
more than 12 percent in the second quarter versus a year
ago.
- After two consecutive quarters of double-digit year-over-year
growth, GM's crew cab mix has risen from 60 percent of sales to
almost 75 percent.
- Full production of all cab styles started in March for both
retail and fleet orders, and inventory is approaching target
levels, especially for the most affordable regular and double cab
models. Sales of these models were down year over year due to
limited availability.
- Customer demand for Chevrolet's new Trail Boss models — the
first full-size pickups equipped with a 2-inch factory-installed
lifted suspension — have far exceeded expectations, so GM will
double production. In addition, for 2020, Chevrolet will offer both
Trail Boss models with a 420-hp, 6.2L V-8 engine.
- More than 95 percent of all-new GMC Sierra 1500 crew cab sales
are high-end trims including SLT, AT4 and Denali.
- GM is introducing a new refined, very powerful and extremely
fuel-efficient 3.0-liter Duramax diesel that is expected to be
available later this quarter.
Heavy-Duty Launch Update (Chevrolet Silverado 2500HD/3500HD,
GMC Sierra 2500HD/3500HD)
- GM has consolidated heavy-duty pickup production at its Flint
(Michigan) Assembly plant. The
company has installed new body and paint shops and created 1,000
new jobs to support a capacity increase of 40,000 units compared to
the outgoing model.
- The company is sharply increasing production of crew cab and
diesel models to meet customer demand.
- Early production will be focused primarily on crew cab models,
similar to the light-duty launch cadence. Trucks began shipping to
dealers in the second half of June, with availability expected to
grow throughout the third and fourth quarters.
Other GM Highlights
- GM's average transaction prices (ATP) rose by $1,575 to a second quarter record of $37,126, compared to an industry average of
$33,681, according to J.D. Power PIN
estimates.
- GM's average incentive spending as a percentage of ATP was 12.6
percent, down from 13.4 percent in the second quarter of 2018,
according to J.D. Power PIN estimates.
- GM's fleet mix of total sales was 23 percent during the second
quarter. Sales were up 3 percent, with the majority of deliveries
going to Commercial and Government customers.
- End of June inventory was 809,387 units, up about 22,000 units
year over year, reflecting new model launches.
General Motors Co. (NYSE: GM) is a global
company committed to delivering safer, better and more sustainable
ways for people to get around. General Motors, its subsidiaries and
its joint venture entities sell vehicles under
the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun, Wuling and Jiefang brands.
More information on the company and its subsidiaries,
including OnStar, a global leader in vehicle safety and
security services, and Maven, its personal mobility brand, 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 customer
experiences in response to increased competition in the automotive
industry; (2) our ability to timely fund and introduce new and
improved vehicle models that are able to attract a sufficient
number of consumers; (3) the success of our crossovers, SUVs and
full-size pick-up trucks; (4) our ability to successfully and
cost-effectively restructure our operations in the U.S. and various
other countries and initiate additional cost reduction actions with
minimal disruption; (5) our ability to reduce the costs associated
with the manufacture and sale of electric vehicles and drive
increased consumer adoption; (6) unique technological, operational
and regulatory risks related to our autonomous vehicle regulations;
(7) global automobile market sales volume, which can be volatile;
(8) our significant business in China which is subject to unique operational,
competitive and regulatory risks as well as economic conditions in
China; (9) our joint ventures,
which we cannot operate solely for our benefit and over which we
may have limited control; (10) the international scale and
footprint of our operations which exposes us to a variety of
political, economic and regulatory risks, including the risk of
changes in government leadership and laws (including labor, tax and
other laws), political instability and economic tensions between
governments and changes in international trade policies, new
barriers to entry and changes to or withdrawals from free trade
agreements, changes in foreign exchange rates and interest rates,
economic downturns in foreign countries, differing local product
preferences and product requirements, compliance with U.S. and
foreign countries' export controls and economic sanctions,
differing labor regulations, requirements and union relationships,
differing dealer and franchise regulations and relationships, and
difficulties in obtaining financing in foreign countries; (11) any
significant disruption at one of our manufacturing facilities could
disrupt our production schedule; (12) the ability of our suppliers
to deliver parts, systems and components without disruption and at
such times to allow us to meet production schedules; (13) prices of
raw materials used by us and our suppliers; (14) our highly
competitive industry, which is characterized by excess
manufacturing capacity and the use of incentives and the
introduction of new and improved vehicle models by our competitors;
(15) the possibility that competitors may independently develop
products and services similar to ours or that our intellectual
property rights are not sufficient to prevent competitors from
developing or selling those products or services; (16) our ability
to manage risks related to security breaches and other disruptions
to our vehicles, information technology networks and systems; (17)
our ability to comply with increasingly complex, restrictive, and
punitive regulations relating to our enterprise data practices,
including the collection, use, sharing, and security of the
Personal Identifiable Information of our customers, employees, or
suppliers; (18) our ability to comply with extensive laws and
regulations applicable to our industry, including those regarding
fuel economy and emissions and autonomous vehicles; (19) costs and
risks associated with litigation and government investigations;
(20) the cost and effect on our reputation of product safety
recalls and alleged defects in products and services; (21) any
additional tax expense or exposure; (22) our continued ability to
develop captive financing capability through GM Financial; and (23)
significant increases in our pension expense or projected pension
contributions resulting from changes in the value of plan assets or
the discount rate applied to value the pension liabilities or
mortality or other assumption changes.. 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, 2018, 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.
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SOURCE General Motors Co.