GM's April Sales Boost Raises Hope Of Gliding Past Recall Woes
Via Forbes
In where it matters most, General Motors seems to be holding up well amid the safety-recall crisis. Its U.S. sales in April were up 7 percent over a year earlier, a relative performance that put GM no worse than in the middle of the pack of how car brands fared during the month.
And GM’s retail sales were up by 8 percent, an indication that the company and its brands haven’t lost the hearts and minds of American car buyers who have been expected to react with varying degrees of aversion as news keeps coming about the automaker’s epic mishandling of the recall of 1.6 million vehicles, sold last decade, because of accident risks from ignition switches.
Some analysts suggest that GM actually has been benefiting from extra showroom traffic brought by owners of the recalled cars who are trading them in for new cars rather than fixing them, and who now are being incentivized with the offer of employee pricing for new vehicles.
In any event, for the year to date through April, GM finally was able to elevate sales to a flat comparison with 2013, after a difficult first quarter of this year.
April sales by arch-rival Ford, by contrast, fell by 1 percent compared with a year earlier, and sales by the still-troubled Volkswagen brand in the U.S. eased by 8 percent.
Meanwhile, among the relative-sales leaders were Nissan, which posted an 18-percent increase over a year ago, and Chrysler, which notched a 14-percent gain over April 2013.
In assessing the increase, GM executives in a news release were careful to step around the subject of the recall. “Retail demand was steady in April, and truck sales and transaction prices were especially strong,” said Kurt McNeil, U.S. vice president of sales operations for GM. He also cited a strengthening economy and “our award-winning new products.”
And indeed, if GM didn’t have such a strong lineup of new and almost-new vehicles, publicity over the safety recall may have become a much bigger drag. As it was, sales of the new Cadillac CTS rose by 68 percent, for instance; sales of the surprising new Chevrolet Impala rose by 27 percent; Buick continued to surprise despite the lack of very recent new-product news, up 12 percent for the brand’s best April since 2006, and even sales of the new Chevrolet Silverado were up 9 percent after a rough first quarter.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →