GM "sold" well in October without hiking promotions

General Motors (GM +1.1%) appears to have picked up market share in the U.S. with several automakers falling short of analyst estimates for October sales, while GM boosted retail sales by 16% and saw pickups and SUVs sell well.

The automaker didn't push up sales tallies with increased promotions, according to data from TrueCar. Average transaction prices were up 7% during the month to a record $34,672.

If there is a nitpick, it's in the large jump in inventory as the industry calls cars sitting on a lot a "sale" which can lead to channel stuffing. Execs with GM have noted in the past that inventory levels can be "lumpy" and longer term trends need to be watched.

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Comments (5)
  • patrickbec
    , contributor
    Comments (47) | Send Message
    Cars sitting on a lot may be sales in the books of a car company, but they are NOT reflected in the monthly sales number. The website linked to that claims the increased sales are due to "channel stuffing" don't know what the hell they are talking about. The Monthly deliveries number is cars sold to retail and fleet buyers, not sales by GM to their dealership body. And all those cars on dealership lots are bought from GM by dealerships, sales that they have to pay for. GM may of course pressure dealers to take more stock then they want, but they don't have to take them nor is their any evidence that GM is putting such pressure on its dealers. The fact that GM's ATP is 34K tells us that incentives are not high, so neither dealers nor GM are discounting cars, which would not make sense if GM is pushing its dealers to take cars they don't want and dealers are overstocked. What is happening is that inventory is going up because GM and its dealers are forecasting big sales increases going forward. The ignorance that abounds about GM on business sites is quite frankly amazing, and to think that some us take stock buying tips from those morons is quite frightening!
    1 Nov 2013, 03:42 PM Reply Like
  • ThetaDecay
    , contributor
    Comments (103) | Send Message
    I enjoy reading zerohedge from time to time, but if you make investment decisions off the information on that site... well you know what they say about a fool and his money.
    1 Nov 2013, 04:47 PM Reply Like
  • Viator
    , contributor
    Comments (29) | Send Message
    If the ideal is sixty days inventory then GM exceeds that by almost a month with 90+ days inventory, the highest of any automaker.

    2 Nov 2013, 10:37 AM Reply Like
  • tcbracing
    , contributor
    Comments (345) | Send Message
    Your referenced article was from March when GM was building up inventory of 2013 Trucks to prepare for shutdowns for the new model.


    September 2013 and August days inventory


    Chrysler 62 62
    Ford 71 67
    GM 82 64
    3 Nov 2013, 09:32 AM Reply Like
  • patrickbec
    , contributor
    Comments (47) | Send Message
    Something that is over-looked when examining days supply is the number of dealers that each manufacturer supports. GM has a much bigger number, thann Ford for example for not significantly bigger market share. And its dealers per unit sold is also bigger than the imports. That is in part due to lots of rural/ small town GM brand dealerships. Of course the dealers want to carry as much stock as possible so they don't lose sales by having a potential customer's desired colour choice or options. That necessarily inflates GM's total inventory number, but its difficult to categorize that as a bad thing in this context.
    4 Nov 2013, 10:14 AM Reply Like
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