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

At Aston Martin, there is the Valkyrie. In the near future, there might also be a Valhalla. Another name that starts with letter “V,” the Valhalla has just been reserved...
by - November 16, 2018
The up-and-coming Audi E-tron GT four-door sports car is one of the electric cars that the premium carmaker has promised to deliver before 2025. But as early as now, some...
by - November 15, 2018
Magneti Marelli S.p.A., the high-end maker of automotive parts and components, will be soon own by a Japanese company. This comes as it current owner, Fiat Chrysler Automobiles has inked...
by - November 15, 2018
It has already been months since Czech carmaker Skoda unveiled the comprehensively refreshed – both in terms of design and engineering -- Fabia hatchback. Now, the car company will be...
by - November 14, 2018
After VIN registrations revealed months ago that Porsche was planning a new 718 Cayman T, new details have surfaced that about the hardcore model. According to a report by Auto...
by - November 14, 2018