General Motors Co. saw a remarkable 21% increase in vehicle sales during the third quarter, demonstrating resilience in the face of rising interest rates and the ongoing United Auto Workers strike. The notable sales boost for the July-September period was propelled by a 16% surge in retail sales and a significant 28% rise in sales of GM’s electric vehicles (EVs). Despite these positive numbers, GM stated that incentives and average prices remained relatively stable during this period.
GM also reported that they ended the quarter with nearly 443,000 vehicles in inventory, marking their best quarter-ending performance in three years.
The current inventory levels of major U.S. carmakers have provided some relief during the UAW strike, which has now entered its third week and has expanded to various plants and auto-parts distribution centers.
In related news, Tesla Inc. failed to meet its third-quarter sales expectations, while EV startup Rivian Automotive Inc. exceeded forecasts for the July-September period. Ford Motor Co., also affected by the UAW strike, is expected to release its September sales report in the coming days.
On another front, Toyota Motors Corp.’s North America unit witnessed a 14% year-on-year increase in U.S. sales for September, and a 12% rise in third-quarter sales.
Furthermore, J.D. Power recently forecasted a more than 13% increase in new vehicle sales for September, marking the second consecutive month of double-digit sales growth. This surge is expected to bring the seasonally adjusted annualized rate for new-vehicle sales to 15.4 million vehicles, an increase of 2 million vehicles compared to September 2022.
While GM shares experienced a nearly 3% drop during the day, they remain down 6% for the year. This stands in contrast to the S&P 500 index, which has advanced by 10% over the same period.
