General Motors sales grew 5% in 2014 despite recall crisis

Article by Christian Andrei, on January 8, 2015

General Motors logged a 19-percent surge in sales in the United States in December 2014, as the carmaker experienced high demand for trucks and offered a 20-percent discount in the month. The surge in December sales allowed GM to post an overall sales jump of 5 percent in full year 2014 – despite the negative publicity brought by recalls of around 27 million vehicles in the US in the period.

GM’s sales results, however, were lower than the US auto industry’s projected 6-7 percent gain. GM offered a 20-percent off the sticker price on vehicles under its Buick and GMC brands. Chevrolet also offered similar discounts for MY2014-2015 Cruze, Impala, Camaro and Sonic. According to a Chevy memo to dealers, the offer was for only the oldest 15 percent of dealers’ inventory.

GM also rolled out a dealer-bonus program – from Dec. 2 , 2014 to Jan. 2 2015 -- on Silverado and Sierra pickups. The trucks posted a combined 34-percent surge in December to 81,273 units, with Silverado sales pegged at 57,837.

The incentive program grants dealers up to $1,000 per pickup sale for achieving individual sales targets. According to GM, its incentive spending equaled 10.4 percent of its average transaction prices in December.

GM saw its overall truck sales -- including pickups, SUVs and vans – jump 32 percent in December.

On the other hand, sales of crossovers and cars leaped 14 percent and 8 percent, respectively. GM said, citing estimates from J.D. Power, that it managed to log its 27th consecutive month of surging average transaction prices, which reached a new high of $36,600 for the month through Dec. 21.

Kurt McNeil, US vice president of sales operations, said in a statement that the surge in sales means that consumers felt good about the direction of the economy.

Topics: gm, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries