Sales in the second quarter
General Motors reported strong growth in its car deliveries in the second quarter, but the figures were slightly below forecasts. Investors see a rapid recovery in the industry after the pandemic, but one persistent big problem.
General Motors (GM), the number one car maker in the US, on Thursday reported a strong increase in its auto shipments in the second quarter: up 39.7% to 688,236 units cumulatively.
General Motors, like many other manufacturers, saw a jump in auto sales from April to June as consumers realised pent-up demand after the coronavirus pandemic and the auto industry recovered.
However, research firms Edmunds and Cox Automotive's expectations for GM sales were higher and envisaged a 40-43% rise.
In its supply report, General Motors noted:
- GMC brand car deliveries were up 50%, posting its best second quarter and best first half since 2005.
- deliveries of the Chevrolet Bolt EV were a record;
- Cadillac sales were up 55%;
- Buick's premium SUVs posted overall sales growth of 86%, leading to its best quarter in more than 15 years.
- General Motors said it expects demand for its cars to remain strong in the second half of this year and into 2022.
At the same time, GM's chief economist noted that consumer demand for cars is constrained by very scarce inventories. At the end of the second quarter, GM had 211,974 vehicles in stock, down 37 per cent from the end of the first quarter, while for context, it is worth noting that the carmaker had about 616,000 units in stock at the end of 2019. The reason is the limited supply of spare parts, namely chips.
