DETROIT, Aug. 1, 2017 /PRNewswire/ -- General Motors (NYSE: GM) today reported July U.S. retail sales of 202,220 vehicles, down about 14 percent from strong sales in July 2016. In July, GM's crossovers and trucks account for 80 percent of sales for the company's best monthly mix ever.
While the U.S. market continues to moderate, sales of GM's newest crossovers were strong in July:
- Chevrolet Equinox - up 4 percent for its best July ever.
- Chevrolet Bolt EV – 1,832 Bolts were sold in July for the best month ever. August will be the first month the Bolt EV is available on a national basis.
- GMC Acadia - up 30 percent for its best July ever.
- Buick Envision - up 89 percent for its best July ever.
- Cadillac XT5 - up 6 percent for its best July ever.
GM's July incentive spending as a percentage of average transaction prices (ATP) was 11.5 percent, more than 1 full percentage point below the industry average, and 0.5 percentage points below GM's 2016 calendar year average. Some of GM's competitors, without strong truck and crossover businesses, are offering significantly higher incentives across their entire portfolios, according to J.D. Power PIN estimates.
In addition, GM's ATPs were about $36,000, up nearly $1,000 from July 2016.
"We have strategically decided to reduce car production rather than increase incentive spending or dump vehicles into daily rental fleets, like some of our competitors," said Kurt McNeil, U.S. vice president of Sales Operations. "We are working hard to protect the residual values of our new products and growing quality retail and commercial sales, and July's ATPs reflect that discipline."
GM's U.S. commercial vehicles sales were up 40 percent from last July, the best July since 2007, led by strong large van sales (up 89 percent), small utilities (up 61 percent) and large pickup sales (up 21 percent). Year to date, GM commercial sales are up 11 percent. U.S. daily rental sales were down more than 11,200 vehicles or 81 percent in July, as planned. In July, GM's daily rental sales accounted for only 1 percent of GM's total sales. GM continues to have the lowest U.S. rental mix of any full-line automaker at about 7 percent of total sales year to date.
GM's July total sales were 226,107 vehicles, down about 15 percent from strong levels last year.
"Changing customer tastes have driven us to refocus our business on higher margin, faster growing segments, like the crossover segments. We are launching the most all-new crossovers in our history to take full advantage of the changes occurring in the U.S. marketplace," added McNeil. "Our newest crossovers are performing very well in the marketplace and we'll build on that momentum with the all-new Chevrolet Traverse, GMC Terrain, Buick Enclave and the introduction of the Regal TourX through 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. auto sales continue to moderate from last year's record pace, but key U.S. economic fundamentals remain supportive of strong vehicle sales," said Mustafa Mohatarem, GM chief economist. "Under the current economic conditions, we anticipate the second half of 2017 will be much stronger than the first half."
July Brand Retail Highlights (vs. July 2016 unless noted)
- Colorado was up 22 percent.
- Both Camaro and Cruze were up slightly.
- Crossovers best year to date: Equinox, Traverse and Trax.
- Volt has best year to date.
- Volt and Bolt EV July sales combined for more than 3,300 deliveries.
- Silverado LD double cab was up 4 percent.
- Best year to date retail sales since 2005, up 2 percent.
- July ATPs are highest since December 2015.
- SUV mix is highest ever at 85 percent.
- ATPs are the highest ever, up 8 percent from last July.
- Sierra boasts the highest ATPs in the full-size pickup segment.
- Sierra HDs up 6 percent in July and year to date up 9 percent, the best in a decade
- Yukon up 4 percent.
- Yukon had its best July since 2007.
- CT6 up 7 percent.
- Year to date, XT5 retail sales are up 10 percent vs. combined SRX and XT5 sales a year ago.
- July ATPs up more than $3,000 and lead the luxury market and more than $3,000 higher than its closest competitor.
Guidance on U.S. Vehicle Inventory Levels
- We anticipate we will end 2017 at or below last year's level, with fewer cars and more trucks, crossovers and utilities in the mix.
- Pickup, crossovers and utility sales, GM's strength, are expected to be stronger in the second half of 2017 vs. the first half of the year.
- We continue to monitor the marketplace and will make additional production adjustments if needed.
General Motors Co. (NYSE: GM, TSX: GMM) 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, 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
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 GM Financial's European financing subsidiaries and branches to the Groupe PSA, 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.
SOURCE General Motors