GM reports 3rd-quarter gain of 21% with pickups, new SUVs driving sales
General Motors reported a 21.4% sales gain Tuesday for the third quarter in U.S. auto sales with nearly 2 million vehicles sold so far this year, an overall gain for 2023 of 19.3%.
The driver of GM's sales are once again pickups and new SUVs, along with increased sales of fleet vehicles.
In the quarter, GM sold 674,336 vehicles compared with 555,580 in the year-ago quarter. GM also made headway in electric vehicle sales and had its highest total inventory since the third quarter of 2020.
According to Cox Automotive, for the year, it estimated GM would gain a half-percentage point in U.S. market share to 16.7%.
What impact has the strike had on sales?
The United Auto Workers strike against the Detroit Three automakers has had little impact on GM's sales in the quarter, but it's early as the strike started only a few weeks ago. But a prolonged strike could affect GM's overall inventory, experts said, and that would be detrimental given GM and other automakers had been rebuilding inventory after parts shortages last year crippled production.
“The UAW strike is clearly a major factor that, should it persist, could reverse gains the industry has made on inventory," said Cox Automotive Chief Economist Jonathan Smoke. "The 'Stand Up' tactic by the UAW has so far minimized the initial disruption, but the approach could enable a much longer disruption than has been possible historically. So far, the impact has been negligible.”
How are EV sales?
In the quarter, GM reported selling 20,092 EVs, and that includes 35 of the Zevo 600 BrightDrop delivery vans. In the year-ago quarter, GM sold 15,156 EVs, mostly Chevrolet Bolts. Through September, GM has sold a total of 56,574 EVs, including having delivered 19 of the new 2023 Chevrolet Blazer EVs, built in Mexico, and 18 of the 2023 Silverado EVs, made at Factory Zero in Detroit and Hamtramck, in the third quarter.
It is still slowing rolling out the Cadillac Lyriq. In the quarter, GM delivered 3,018, up from the 36 it delivered in the year-ago quarter, but since January, GM has delivered only 5,334 Lyriqs.
GM has big plans to launch more EVs in the second half, which the strike could disrupt if it expands to the factories where GM builds EVs such as Orion Township, home of the Chevrolet Bolt and Bolt EUV, Spring Hill Assembly in Tennessee, where the Lyriq is made, and Factory Zero.
How is GM's inventory and affordability?
Smoke said another challenge to car sales through the end of the year will be rising interest rates.
“Limited Inventory was the leading factor one year ago, but now it’s interest rates, the economy and credit availability, which all make affordability more challenging," Smoke said. "Ultimately, these are not good signs for demand continuing to be strong or improving in the fourth quarter.”
GM said its average transaction prices are coming down. In the quarter, the average transaction price was $50,553, down by $500 compared with the year-ago period.
Dealer inventory at the end of the quarter was up slightly at 442,586 compared with the end of the second quarter at about 412,285 vehicles in stock and the highest since the third quarter of 2020, GM said.
Where does GM rank among other automakers?
GM retains the sales crown in the U.S. Its closest rival, Toyota Motor North America, reported third-quarter sales Tuesday of 590,296 vehicles, up 12.2% compared with the year-ago period. According to Cox data, Toyota's year-to-date U.S. market share dropped 1.3% to 13.8%. But year-to-date, sales of Toyota's electrified vehicle, which include hybrids, are up 20.3% to 455,142 units sold.
Stellantis reported a 1% decline in U.S. vehicle sales on Tuesday in the third quarter compared with the same period a year ago. The company, which owns the Jeep, Ram, Chrysler, Dodge, Fiat and Alfa Romeo brands, reported U.S. sales of 380,563 vehicles for the quarter. Ford Motor Co. reports its results Wednesday.
Which GM vehicles saw the biggest sales gains?
In the quarter, Buick sales rose 54% with strong sales of the Enclave and Encore GX SUVs.
The new Chevrolet Trax compact SUV took off, selling 37,869, a 498% increase over the year-ago period when GM sold 6,329.
Sales of full-size pickups soared with the Chevrolet Silverado up 22% to 143,467 in the quarter and the GMC Sierra up 46% to 73,219.
Sales of the Colorado midsize pickup rose 5% to 25,520, significant given the UAW is striking Wentzville Assembly Plant in Missouri where the Colorado and the GMC Canyon are made. Canyon sales dipped about 2% to 7,627 in the quarter.
GM makes the Chevrolet Traverse at Lansing Delta Assembly plant, which just went on strike Friday. Traverse sales in the quarter increased 27% to 32,318. Also made at Lansing Delta is the Buick Enclave, which saw sales rise 34% to 10,553 in the quarter.
This story was updated to reflect the change in average transaction pricing in the quarter as being down by $500 not $1,300.
More: GM lays off more plant employees after latest expansion of UAW strike
More: Ford cancels dealer stock orders of 2023 F-150 Lightning to do quality checks
What are the challenges?
Cadillac saw the smallest gains of GM's brands with total sales in the quarter up 6% to 35,638. Its XT4, XT5 and XT6 SUVs all experienced sales declines. The Escalade SUV remains its best seller up 7.5% to 10,700 units sold.
Also, Chevrolet's big SUVs saw lower sales from the year-ago period. Sales of the Suburban dropped 11% to 12,083 and sales of the Tahoe slipped 7% to 27,578.
Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.
This article originally appeared on Detroit Free Press: GM reports 3rd-quarter sales gain of 21%: Pickups, SUVs drive sales
