GM: Annual sales decline despite gains in retail market share, prices
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DETROIT -- General Motors posted its first annual U.S. sales decline since 2009, but it achieved above-average gains in retail market share and average transaction prices.
GM said its U.S. sales rose 10 percent in December to 319,108 units -- the highest volume for any month since September 2007. For all of 2016, GM’s sales slipped 1.3 percent.
A 43 percent surge in fleet deliveries last month accounted for most of GM’s December volume increase. The increase was expected based on executives’ previous guidance, and GM finished the year having reduced sales to rental-car fleets by nearly 74,000 units, or 18 percent.
GM’s retail sales rose 3.4 percent in December and 1.8 percent on the year, resulting in a retail share increase of 0.5 percent, GM said. On that basis, GM said it was the industry’s fastest-growing manufacturer, having gained retail share in 18 of the past 21 months.
“We finished 2016 with a strong December, reflecting the continued strength of GM’s U.S. retail and commercial businesses,” Kurt McNeil, GM’s vice president of U.S. sales operations, said in a statement. “We begin 2017 well positioned to continue growing our U.S. retail business, driven by all-new products like the Chevrolet Equinox and Traverse being launched into key, growing U.S. market segments.”
Chevy led the way for GM in December with a 13 percent sales gain. That included an 87 percent jump for the Malibu sedan, which finished the year with sales of 227,881 units, the most for that nameplate since 1980.
Other big gainers in December included the Volt, up 75 percent; Trax, up 50 percent; Equinox, up 25 percent; and Colorado, up 19 percent. Sales of the Spark more than tripled.
In contrast, Cadillac had its worst year since 2012, with sales falling 3 percent from 2015 to 170,006 units. Cadillac’s retail sales declined 4.8 percent, the biggest drop among GM’s four U.S. brands.
In December, Cadillac sales rose 3.2 percent, despite a 10 percent retail decline, because its fleet deliveries surged 140 percent. Buick and GMC also posted increases in total sales despite small retail declines.
Sales of GM’s full-size SUVs, which are among its most profitable vehicles, increased 18 percent in 2016. That helped GM increase its average transaction price by $720 from 2015 to $35,371. In December, GM said consumers paid about $1,000 more than its full-year average.
GM’s inventories, after climbing to their highest level in almost nine years as of Dec. 1, declined more than 29,000 units during the month. That reduction, combined with the company’s increased selling rate, left the automaker with a 71-day supply of vehicles as of Jan. 1, down from 86 days a month earlier.
GM aims to further reduce inventories with layoffs planned at three U.S. plants in January and March.
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