Source: AFP
General Motors reported a drop in U.S. auto sales in the third quarter on Tuesday, but pointed to growth in sales of electric vehicles and said retail prices remained steady.
The Detroit-based automaker reported 659,601 U.S. sales during the period, down 2.2 percent from a year ago, but a slightly smaller decline than analysts had expected.
Sales were mixed among the truck and SUV products that have supported GM’s profits in recent years.
While GM saw an increase in sales of its GMC Sierra trucks, its top-selling Silverado lineup saw a decline.
GM described its EV portfolio as “growing faster than the market” with sales up 46% in the third quarter to more than 32,000.
GM and Ford have slowed some investments in electric vehicles due to subdued demand for the vehicles.
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GM said the average vehicle price of $49,349 was in line with the second quarter, with incentives also holding steady.
The automaker has 627,048 vehicles in inventory heading into the fourth quarter, which is well above the level a year ago when Detroit automakers were facing a workers’ strike. However, this level is still lower than pre-pandemic supplies.
Garrett Nelson, an analyst at CFRA Research, described GM’s sales as “broadly in line” with the US auto industry’s performance during the period.
Cox Automotive forecast a 2.1 percent drop in sales among U.S. automakers in the period, with some volatility from the pre-election period offset by a boost from lower interest rate cuts.
“We remain optimistic that new vehicle sales could improve marginally through the final quarter of 2024,” said Charlie Chesbrough, senior economist at Cox.
Source: AFP
