GM Grows Total and Retail Sales in February, Market Share up Sharply, Transaction Prices Set February Record

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Mar 01, 2017, 08:42 ET

DETROIT, March 1, 2017 /PRNewswire/ -- Record sales of crossovers, large SUVs and pickups in February drove General Motors' (NYSE: GM) retail market share up more than one-half percentage point versus a year ago. Average transaction prices, which reflect what customers pay after sales incentives, also set a February record.

"Our retail-focused go-to-market strategy is delivering robust results," said Kurt McNeil, U.S. vice president, Sales Operations. "All of our brands grew their average transaction prices by healthy amounts, and we delivered solid growth in the industry's fastest-growing and most profitable segments."

February Highlights (vs. February 2016)

GM's total sales were up 4 percent to 237,388 units compared with an estimated 1 percent decline for the industry. This equates to a market share of 17.5 percent, an increase of 0.9 percentage points.
Retail sales totaled 188,715 units, up 5 percent, compared with a flat industry. This equates to a market share of 17.7 percent, an increase of 0.7 percentage points.
GM's average transaction prices (ATPs) rose $570 per unit to $34,900, a February record. Three years of J.D. Power PIN data show that GM has led the industry in ATPs in 35 of 36 months through February.
GM internal data shows that incentive spending was essentially flat year over year. This is in sharp contrast to recently published PIN estimates that noted an increase of 2.7 percentage points to 15 percent of ATP.
Commercial deliveries were up 7 percent, driven by an 11 percent increase in pickup sales and a 75 percent increase in Chevrolet Malibu sales. It was the best February Commercial sales since 2008. Government sales were up 4 percent and daily rental deliveries were down 2 percent. Total fleet sales were up 2 percent.
Small business deliveries, which are included in retail sales, were up 13 percent, driven by a 22 percent increase in full-size pickups and a 39 percent increase in large vans.
GM estimates the seasonally adjusted annual selling rate (SAAR) for light vehicles was approximately 17.5 million units.

Brand Highlights (vs. February 2016)

Chevrolet had its best February retail sales since 2007 and its best February total sales since 2008. Crossovers deliveries set a February record for the brand.
Three Chevrolet models ― the Trax, Equinox and Volt ― had their best February total and retail sales ever. Traverse had its best-ever February total sales, and its best February retail sales since 2011.
Deliveries of the Chevrolet Bolt EV approached 1,000 units. The national rollout of the crossover is just underway.
The Chevrolet Suburban had its best February retail sales since 2008, and the Silverado had its best February total and retail sales since 2007.
Buick had its best February retail sales since 2004, driven by the all-new Envision and the Encore, which set a February record.
GMC had its best February retail sales since 2002, with trucks and crossovers up 18 percent and 15 percent, respectively. Standouts include the Canyon, up 21 percent; the Sierra, up 19 percent; the Acadia, up 22 percent; and the Terrain, up 8 percent.
GMC Denali penetration, at 26 percent of GMC retail sales, was the highest for any February in history.
GM estimates that Chevrolet and GMC earned more than 40 percent of all full-size pickup retail sales, with ATPs up nearly $600 per unit.
Cadillac XT5 retail deliveries were 6 percent higher than the SRX it replaced. Average transaction prices are 8 percent higher than SRX.

GM 2017 Outlook

GM is optimistic that the company, and Chevrolet in particular, will continue to gain retail market share in an industry expected to remain at or near record sales levels.

"Looking ahead, we will stay focused on strengthening our brands, growing retail sales and share, reducing daily rental deliveries and maintaining our operating discipline," McNeil said. "Our strong small business deliveries are a clear sign of growing confidence in the economy."

In 2016, GM was the industry's fastest-growing full-line automaker on a retail sales basis, and Chevrolet has been the fastest-growing full-line brand for two consecutive years.
Ten all-new or recently redesigned crossovers are expected to drive GM's sales and share higher in 2017, including the Chevrolet Equinox and GMC Terrain, which will compete in the industry's largest segment.
GM's deliveries to daily rental companies are expected to decline as a percentage of total sales for the third year in a row.
GM intends to match production with customer demand, and the company's overall operating discipline should help drive continued improvements in brand health and resale values.
Year-end inventories, which include in-transit vehicles, are expected to be in the same range as 2016.

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

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SOURCE General Motors