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GM’s US Market Share Rose in 3Q17 despite Stagnant Sales

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Oct. 26 2017, Updated 8:09 a.m. ET

GM’s market share in 3Q17

In 3Q17, General Motors (GM) maintained the largest market share in the US auto market ahead of Ford Motor Company (F), Toyota (TM), and Fiat Chrysler (FCAU). In 2016, GM stood at the third position on the list of the largest global automakers by vehicle sales volume in the world after Volkswagen (VLKAY) and Toyota. Let’s take a closer look at the company’s 3Q17 market share.

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Stronger US market share

According to General Motors’ estimates presented in its 3Q17 earnings report, its US market share during the quarter was at 17.3%, higher than the 17% market share a year ago. In 2Q17, the company’s US market share was 16.1% in comparison to its market share of 16.3% 2Q16.

For the last few years, GM has been intentionally cutting its fleet sales to rental car companies in order to boost its profitability, as it wanted to utilize its plant capacity to manufacture other more profitable vehicles for retail sales. However, the company reported an increase in its 3Q17 fleet sales, which helped it to grow its market share in its home market.

Stronger crossover market share

In general, trucks and crossovers tend to yield higher margins than smaller cars for auto companies. In 3Q17, GM’s US market share in the US truck segment fell marginally to 27.2% from 27.8% a year ago. On the brighter side, the company reported a significant rise in the US crossover segment market share, which stood at 15.4% in 3Q17, up from 13.3% in 3Q16.

GM generates the majority of its revenues from the US market. In such a scenario, a year-over-year increase in the US crossover segment market share and quarter-over-quarter strength in the truck segment could be positive signs.

Other mainstream auto giants (XLY) such as Ford (F), Toyota (TM), and Fiat Chrysler (FCAU) also make a significant portion of their revenues from the US.

Next, we’ll take a look at GM Financial Company’s 3Q17 performance.

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