GM Posts Sixth Consecutive Jump in Retail Market Share
“Staying focused on core values like initial quality, sales and service satisfaction, cost of ownership, dependability and advanced technology is paying off in higher sales and share, stronger transaction prices and lower incentives,” said Kurt McNeil, GM’s U.S. vice president of Sales Operations. “Unlike our competitors, we did not need to rely on higher incentives to grow our business.”
GM’s average transaction prices (ATPs) increased almost $800 per unit compared to August 2015, according to J.D. Power PIN estimates. Incentive spending in September was down 1 percentage point from August 2015, much greater than the industry’s 0.2 percentage point decline. Year over year, spending was down 0.7 percentage points, while industry spending increased 0.9 percentage points.
Commercial deliveries increased 10 percent year over year for the 23rd consecutive monthly increase. Consistent with GM’s plan, total fleet sales were down 5 percent due to a 12 percent decline in rental deliveries.
Full-Size Pickup Highlights
September sales and PIN estimates bear out the momentum the Chevrolet Silverado and GMC Sierra have with both individual and commercial customers:
- GM’s estimated share of the retail market for full-size pickups is 39.2 percent, up 0.4 of a percentage point month over month and almost 3 percentage points higher than the next closest competitor.
- ATPs increased more than $800 per unit month over month and almost $3,200 year over year.
- Average incentives were down $400 per unit month over month and almost $800 year over year.
- Commercial deliveries have increased for 17 consecutive months.
New Truck Paradigm
During the last two years, GM has built the industry’s most successful retail truck franchise by completely redesigning its full-size pickups and SUVs, launching all-new V-8 and V-6 powertrains, and re-entering the mid-size pickup segment.
- On a retail basis, Chevrolet and GMC pickups were up 24 percent in September and they are up 30 percent calendar year to date.
- GM’s share of the entire retail pickup market is estimated to be 39 percent.
- Combined, Chevrolet and GMC have 78 percent of the retail market for full-size SUVs, along with the highest ATPs, according to PIN. September ATPs were up more than $730 compared with August, and they were up more than $2,800 from a year ago.
- The Cadillac Escalade and Escalade ESV have a 31 percent share of the retail market for large luxury SUVs.
- The GMC Yukon and Yukon XL, the Sierra and the Canyon have the highest ATPs of any vehicles in their respective segments, according to PIN.
- In less than a year, the Chevrolet Colorado and GMC Canyon have gone from zero to 40 percent retail market share in their segment. The Colorado has also been the industry’s fastest-selling pickup for eight consecutive months, with a days to turn of 21 in September.
To keep momentum building, Chevrolet unveiled a redesigned 2016 Silverado at the State Fair of Texas in September. It features new styling, expanded availability of 8-speed transmissions, more advanced safety features and class-exclusive availability of Apple CarPlay and Android Auto. In addition, Chevrolet and GMC will launch a new 2.8-liter Duramax diesel engine this fall in the Colorado and Canyon.
GM’s strong results helped the seasonally adjusted annual selling rate (SAAR) for light vehicles reach an estimated 18.3 million units in September. The six-month moving average for the SAAR is now estimated to be 17.6 million units.
“The U.S. is adding jobs, disposable income is rising, energy prices and interest rates remain low and business continues to invest, but the fact remains this has been a slow recovery,” said Mustafa Mohatarem, GM’s chief economist. “The economy still has room to grow and so do auto sales, particularly now that the Millennials are entering the workforce and starting households.”