General Motors in 2017
In the previous part, we looked at how strong demand for trucks has supported General Motors’ (GM) earnings in the first three quarters of 2017. While the company’s US sales have witnessed a minor drop in the first 11 months of 2017, its China sales remained firm.
In this part, we’ll look at GM’s first 11 months sales data and find out how its key brands, including Chevrolet and Buick, have performed during this period.
US retail sales
In the first 11 months of 2017, General Motors sold ~1.4 million units of Chevrolet brand vehicles to retail customers, down 0.9% YoY (year-over-year). Chevrolet brand has been the largest contributor to General Motors’ revenues since 1929, which increases the significance of Chevrolet brand for the company.
At the same time, the US retail sales of GMC and Cadillac, the company’s other key brands, fell 0.8% and 7.8% YoY, respectively. In contrast, GMC’s total US sales, including its fleet sales, rose 2.8% YoY in the first 11 months this year.
Meanwhile, the retail sales of GM’s Buick brand were nearly flat with minor sales volume increase of 0.2% YoY. During this period, ~184,000 units of Buick brand vehicles were sold to retail customers.
With this, General Motors total US sales have fallen 1.1% YoY, and its US retail sales have fallen 1.2% YoY from January to November 2017.
China sales strengthened
GM’s presence in China has improved significantly in the Chinese market with market share gains. In the first 11 months of 2017, the company reported sales of ~3.5 million vehicle units in China, up ~3.3% from its Chinese market sales in the corresponding period of 2016.
Notably, China is the largest auto market in the world with solid future growth potential. This is the reason why mainstream automakers (IYK) such as GM, Ford (F), Fiat Chrysler (FCAU), and Volkswagen (VLKAY) have increased their stakes to gain market share in China in recent years.
In the next part, we’ll look at GM’s revenues in 2017.