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.

Topics: gm, sales

If you liked the article, share on:

Comments

Recommended

It is quite common to revive classic cars if you have a lot of extra money. Models like the Jaguar XKSS and Aston Martin’s DB4 GT have been upgraded to...
by - August 21, 2017
Famous designer of certain Ferrari vehicles like the Enzo Ferrari and the P4/5, Ken Okuyama has revealed another one of his designs at the 2017 Pebble Beach Concours over the...
by - August 21, 2017
The current generation of the BMW M3 (F80) sedan isn’t just sporty and luxurious in terms of looks, but also in terms of performance. Because of its athletic appeal, the...
by - August 21, 2017
A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 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