General Motors Company (NYSE:GM) seems unaffected and has managed to survive the negative publicity regarding the recalls of millions of its vehicles related to the defective ignition switches that caused 13 fatalities.
General Motors monthly sales performance
The automaker reported that its sales increased 13% to 284,694 vehicles in May–its best total since August 2008. According to the company, its retail sales rose 10%, while its fleet sales climbed 21% last month. The automaker projected that its total market share will increase year-over-year.
In a statement, Kurt McNeil, vice president of U.S. sales operations at General Motors Company (NYSE:GM), said, “The momentum we generated in April carried into May, with all four brands performing well in a growing economy and 17 vehicle lines posting double-digit retail sales increases or better.”
According to the automaker, the total sales performance of Chevrolet jumped 14%, driven by strong performance of its Corvette, Camaro, Spark, Impala, Malibu, Equinox and Silverado brands.General Motors Company (NYSE:GM) also generated strong sales from its Buick and Cadillac brands. Deliveries of its Buick Encore more than doubled, while sales of the Regal rose 49%. Cadillac’s sales for the CTS sedan jumped 39%, and Escalade deliveries went up 30%. Sales of the SRX grew 27%.
The automaker said its estimated seasonally adjusted annual selling rate (SAAR) for light vehicles was 16.5 million units. Its average transaction prices (ATPs), including full-size pickup ATPs, were in line with last April. GM’s year-to-date ATPs increased by approximately $2,700.
Defying Logic
Commenting on the May sales results, Jack Nerad, senior analyst at KBB.com, said the company “seemed almost defy logic in a month that included dismal consumer confidence scores and the announcement that the American economy as a whole had actually contracted in the first quarter, auto sales were very robust.”
He added, “General Motors’ sales results epitomized that trend of defying logic. GM announced a near-record number of recalls during May, yet it turned in its best monthly sales since August 2008, the last month before the financial meltdown that triggered the Great Recession.”
Stock price
The stock price of General Motors Company (NYSE:GM) gained nearly 1% to $35.19 per share today. Shares of the automaker are down more than 14% year-to-date.
