GM sales up 1% in the US in June 2014 despite current recall crisis

Article by Christian Andrei, on July 4, 2014

The current recall crisis at General Motors has failed to bring the carmaker down in terms of sales. In fact, the carmaker managed to post a 1-percent surge in sales in the United States last month to 267,461 vehicles, marking its strongest June in seven years. Retail sales at GM jumped while fleet sales climbed 2 percent, thanks to strong demand from commercial and government customers.

GM’s Chevrolet, which was the most hit by the recall crisis, posted a 3-percent drop in sales in June. With pricing still "in line" with April and May, GM managed to post an average transaction price of around $33,674 in the second quarter.

According to the carmaker, citing J.D. Power data, its inventive spending as a percentage of average transaction prices surged 0.2 of a percentage point from a year earlier to 10.9 percent.

This week GM issued six more recalls covering 27 models and 8.4 million vehicles around the world – bringing the total number of callbacks so far this year to 54 covering about 28.9 million vehicles globally.

Among GM’s brands, Buick made the largest jump in June at 18 percent to 21,403 units, thanks to a near doubling in sales of the Encore small crossover. GMC, meanwhile, saw its sales jump 11 percent, thanks to strong performance of the redesigned 2015 Yukon that climbed 120 percent and Yukon XL that hiked 70 percent).

These figures more than offset weak sales of the Acadia, which was down 13 percent, and the Sierra pickup that dropped 7 percent. Chevrolet’s drop came on the heels of lower demand for its Cruze compact (down 21 percent), Malibu mid-sized sedan (down 24 percent) and Equinox crossover (down 8 percent).

Chevrolet, however, saw sales for its Suburban SUV jump 73 percent while the figure for its Tahoe soar 93 percent. Sales at GM’s Cadillac brands were flat in June, after posting a 32-percent drop in sales of the ATS compact sedan.

Topics: gm, sales, united states

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