General Motors (NYSE: GM) today reported May U.S. retail sales of 191,388 vehicles, up slightly from last year. GM’s May retail performance was driven by exceptionally strong crossover sales at Chevrolet, Buick, GMC and Cadillac.
GM’s U.S. Commercial sales in May were up 14 percent, while Government sales jumped 21 percent. Daily rental sales were down 36 percent, as planned. GM is on track to deliver its third consecutive year-over-year decline in daily rental volume.
GM’s May total sales were 237,364 vehicles, down about 1 percent from last year.
On a brand level, Buick’s U.S. retail sales in May were up 12 percent, while retail sales at Cadillac and Chevrolet were up 10 percent and less than 1 percent, respectively.
In May, GM crossovers were up 19 percent on a U.S. retail sales basis compared to last year. This strong performance was carried across all GM’s U.S. brands:
- Chevrolet Equinox — up 17 percent
- Chevrolet Trax — up 18 percent
- Chevrolet Traverse – up 2 percent
- Buick Encore — up 12 percent
- Buick Envision — 3,256 deliveries in May, up significantly from last year’s launch
- GMC Acadia — up 33 percent
- Cadillac XT5 — up 110 percent
“As we see the industry shift to more crossovers, we are extremely well positioned to take full advantage of this dynamic,” said Kurt McNeil, U.S. vice president of Sales Operations. “We expect these launches will enable us to continue gaining retail share as we introduce more all-new compact and midsize crossovers than anyone else, including the all-new GMC Terrain, Chevrolet Traverse, Buick Enclave and the Regal TourX.”
Chevrolet dealers have begun selling the all-new Equinox with a highly efficient 1.5L engine. Additional powertrain offerings on the all-new Equinox will be available starting this summer. The all-new 2018 Traverse midsize crossover will arrive in Chevrolet dealer showrooms this summer as well.
GMC dealers will begin delivering the all-new Terrain compact crossover in late summer and Buick dealers will roll out the new Enclave midsize crossover in the fall.
Other May Sales Highlights (vs. 2016)
- According to J.D Power PIN estimates, GM’s incentive spending as a percentage of average transaction prices (ATP) was 11.6 percent in May. That is equal to the industry average and lower than our 2016 calendar year average, and lower than any domestic and many Asian competitors.
- GM’s incentive spending as a percent of ATP was down 0.8 points from April.
- ATPs were $35,283, up more than $640 per vehicle from April.
Year-to-Date Highlights thru May (vs. 2016)
- GM’s U.S. retail market share is up 0.2 percentage points, driven by Buick and Cadillac.
- Buick’s U.S. retail sales are up 8 percent.
- Cadillac U.S. retail sales are up 1 percent.
“U.S. economic fundamentals remain strong with a retail SAAR of 14.2 million, equal to last year’s record pace. The U.S. economy is operating at near full employment levels, wages are rising, interest rates and fuel prices remain low and consumer confidence remains high. The decline in total sales is primarily due to the industry’s pull back from daily rental sales. Although total sales are running below our expectations, we anticipate retail vehicle sales will remain strong,” said Mustafa Mohatarem, GM chief economist.
May Brand Retail Highlights (vs. 2016)
- Malibu and Camaro were up 40 percent and 6 percent, respectively.
- Malibu had its best month since October 1980.
- Equinox, Traverse and Trax were up 17 percent, 2 percent and 18 percent, respectively.
- Chevrolet had its best year to date performance for crossovers ever.
- Chevrolet dealers sold 1,438 Bolt EVs to retail customers, the best month ever for the game-changing EV.
- Encore was up 12 percent and had its best May ever.
- Envision celebrates one year in the marketplace and was Buick’s second best-selling nameplate.
- Lacrosse was up 1 percent.
- GMC reached a record for May ATPs at $44,675, up $1,667 over last May.
- Acadia was up 33 percent.
- CT6 was up 44 percent.
- Escalade was up 21 percent.
- XT5 was up 110 percent.
- XT5 ATP is up over $3,000 from its predecessor.
Guidance on U.S. Vehicle Inventory Levels
- We remain on track to achieve our year-end guidance. We anticipate we will end 2017 with approximately the same day supply of vehicles as we did at the end of 2016 with fewer cars and more trucks and crossovers in the mix this year.
- Launch-related downtime in the second half will cut nearly 100,000 units from inventory.
- We will continue to monitor the marketplace and will make additional production adjustments if needed.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company 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, Opel, Vauxhall 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 Opel/Vauxhall to the PSA Group, 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.