General Motors sales grew 5% in 2014 despite recall crisis

Article by Christian A., 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.

If you liked the article, share on:

Topics: gm, sales

Comments

Recommended

TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 2017
Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
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