US Markets
Tuesday, October 3rd, 2023 4:29 pm EDT
Key Points
- General Motors (GM) reported a substantial 21.4% increase in U.S. new vehicle sales for the third quarter, despite an ongoing strike by the United Auto Workers (UAW) union against Detroit automakers. This sales growth outpaced industry expectations, which had predicted a 15% to 16% increase for the overall industry during the same period. Sales of all GM’s brands saw a rise compared to the previous year, indicating strong performance for the company.
- While the UAW strike has not significantly impacted GM’s sales in the short term, there are concerns that both GM and other companies may face sales and supply chain challenges if the strike is expanded or prolonged. The strike began on September 15, with a relatively small percentage of UAW members participating initially. The impact of the strikes may become more apparent in October, especially for certain vehicle models like the Chevrolet Colorado and GMC Canyon midsize pickups, where work stoppages have affected production. GM’s production of midsize pickups and certain SUVs has been impacted by the strikes.
General Motors (GM) reported a 21.4% increase in U.S. new vehicle sales for the third quarter, despite an ongoing strike by the United Auto Workers (UAW) union against Detroit automakers. This growth surpassed industry expectations, which had anticipated a 15% to 16% increase for the overall industry in the same period. The strike began on September 15 and has had little direct impact on GM’s sales so far, as only 17% of UAW members covered by expired contracts with GM, Ford Motor, and Stellantis are part of the work stoppages.
The UAW has been gradually escalating the strikes instead of conducting national walkouts, aiming to preserve union funds and extend work stoppages to pressure automakers. The effects of the strikes may start becoming more noticeable in October, particularly for vehicles like the Chevrolet Colorado and GMC Canyon midsize pickups, where production has been affected. Cox Automotive’s chief economist, Jonathan Smoke, noted that large SUVs from Chevrolet and Cadillac, with tighter inventory levels compared to rivals, are more vulnerable if the strikes expand.
Despite the strike, GM’s sales for the fourth quarter were up over 19% with approximately 1.97 million vehicles sold in the U.S. This included a 28% increase in electric vehicle (EV) sales compared to the second quarter, driven by the introduction of new electric versions of the Chevrolet Blazer SUV and Silverado pickup. GM also increased production and sales of the Cadillac Lyriq EV and Hummer models. However, GM’s EV sales still lag behind Tesla’s. Additionally, GM benefited from the growth of newer, entry-level models such as the Chevrolet Trax and Buick Envista, which are imported from South Korea.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/03/gm-third-quarter-sales-jump-21percent-as-uaw-strike-slowly-expands.html
