GM's U.S. Sales Up 6.3% in Third Quarter
03 October 2019 - 3:18AM
Dow Jones News
By Nora Naughton
General Motors Co.'s U.S. auto sales climbed 6.3% in the third
quarter on higher pickup-truck sales and strong demand for its
sport-utility vehicles, signaling a United Auto Workers strike at
its U.S. factories has so far had little effect on showroom
traffic.
GM's quarterly sales gains contrast with flat results at Fiat
Chrysler Automobiles NV for the same period and a 5.1% decline
reported by Ford Motor Co. for the third quarter.
The strike at GM, now in its third week, has brought the
company's more than 30 U.S. factories to a standstill, denting
third-quarter profits and limiting supplies to dealerships.
Still, new-vehicle buyers continued to snap up GM models, with
pickup-trucks sales at Chevrolet up 18% and up nearly 40% at GMC in
the third quarter. The Detroit car company is benefiting from new
redesigned pickup trucks that started hitting dealer lots in larger
supplies in the third quarter. Sales of large SUVs also increased,
with the Chevrolet Traverse up about 25% and GMC's Acadia up
50%.
Stock levels at GM dealerships remain relatively healthy despite
the work stoppage, with retailers carrying about 760,000 vehicles
in inventory. Morgan Stanley estimates GM dealers have enough stock
to last 81 days without replacement inventory, down from 84 a year
earlier.
GM's strength comes as the U.S. car market continues to soften
overall, following a period of historically strong sales bolstered
by a robust U.S. economy and low unemployment.
--Mike Colias contributed to this article.
Write to Nora Naughton at nora.naughton@wsj.com
(END) Dow Jones Newswires
October 02, 2019 13:03 ET (17:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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