We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors' (GM) Q2 Sales Jump on Robust SUV & Pickup Demand
Read MoreHide Full Article
General Motors (GM - Free Report) recently released figures for vehicles sold in the United States during the second quarter of 2021.
The U.S.-based automaker reported sales of 688,236 vehicles in the United States in the quarter under discussion, marking an increase of 40% from the year-ago period. The performance was driven by solid customer demand for pick-ups and SUVs but constrained by tight inventories amid the global semiconductor crunch.
During the second quarter, sales elevated across all four General Motors brands — Buick, Chevrolet, GMC and Cadillac.
Buick deliveries surged 86%, resulting in the brand’s best quarter in more than 15 years. This outperformance was fueled by strong demand for the new Encore GX, revamped Envision, and Enclave, sales of which skyrocketed 184%, 97% and 103%, respectively.
Chevrolet sales climbed 31%, resulting in the best ever second-quarter sales and best first-half sales for both Bolt EV and the Traverse. GMC deliveries rose 50%, on the rising sales of Sierra LD and HD models, up 38 and 46%, respectively. In fact, it was the best second quarter and best first half since 2005 for GMC, aided by Yukon and Yukon XL. Chevrolet Silverado and GMC Sierra sales combined soared 36%, with light-duty models posting robust segment share gains.
Cadillac’s second-quarter retail sales were its best since 2015. Moreover, Cadillac’s total sales surged 55%, leading to the brand’s third consecutive quarter of year-over-year growth.
Fleet sales, accounting for about 14% of General Motors’ total sales, were adversely impacted by pandemic shutdowns a year ago. Nonetheless, fleet sales started to recover as the company started to align production of its most coveted vehicles. This resulted in fleet deliveries rising 69% in the quarter compared to the year-ago period.
The efficiency of General Motors’ supply chain, purchasing, engineering and manufacturing teams, along with its well-connected suppliers and dealers network, boosted the automakers’ second-quarter deliveries and aided it to capture a niche in some of the rampant segments of the market.
However, General Motors closed the quarter with 211,974 units in inventory, lower than the 334,628 seen at the end of the prior-year quarter.
Like most other automakers, General Motors was hobbled by the global semiconductor chip dearth, used in various car parts, since the first part of the year. This forced the automaker to temporarily halt production across several plants in North America.
Nonetheless, the automaker was able to successfully navigate the chip crunch, as was evident by the company’s plans to ramp up production and deliveries of nearly all its vehicles, announced in June. General Motors has been able to bring nearly all of its assembly plants back to operation by diverting the scarce chip parts to the vehicles that are in the highest demand and generate the biggest profits.
During the second quarter, General Motors captured 40.6% of the retail market for full-size pick-ups, up 4.5 percentage points year over year. Based on General Motors’ boost in second-quarter deliveries, it seems the automaker is well positioned in 2021 to lead the industry in full- and mid-size pick-up sales for the seventh consecutive year.
Further, the Detroit auto biggie is taking crucial steps to cater to customers’ future needs, especially in segments having limited capacity. General Motors plans to increase production at Flint Assembly in Michigan, where it builds its heavy-duty full-size pick-ups, by 1,000 vehicles per month starting mid-July. The automaker also plans to return full-size pick-up production to Oshawa Assembly in Canada by the end of this year rather than next year. Moreover, shipments of Colorado and Canyon pick-ups will be up about 30,000 units from mid-May through early July as the workers at the Wentzville plant finish testing those vehicles that were partially built but held at the plant awaiting semiconductor supply.
All in all, General Motors delivered stellar second-quarter sales results, especially in its pick-up truck line-up, which hands down, is the biggest catalyst of its profits. Still, to stay at the top of its game, the automaker will have to keep the semiconductor chipsets flowing in order to keep the vehicles rolling off smoothly.
Shares of General Motors have appreciated 134.2% in the past year, while the industry has witnessed a rise of 118.5%.
Image Source: Zacks Investment Research
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today. See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors' (GM) Q2 Sales Jump on Robust SUV & Pickup Demand
General Motors (GM - Free Report) recently released figures for vehicles sold in the United States during the second quarter of 2021.
The U.S.-based automaker reported sales of 688,236 vehicles in the United States in the quarter under discussion, marking an increase of 40% from the year-ago period. The performance was driven by solid customer demand for pick-ups and SUVs but constrained by tight inventories amid the global semiconductor crunch.
During the second quarter, sales elevated across all four General Motors brands — Buick, Chevrolet, GMC and Cadillac.
Buick deliveries surged 86%, resulting in the brand’s best quarter in more than 15 years. This outperformance was fueled by strong demand for the new Encore GX, revamped Envision, and Enclave, sales of which skyrocketed 184%, 97% and 103%, respectively.
Chevrolet sales climbed 31%, resulting in the best ever second-quarter sales and best first-half sales for both Bolt EV and the Traverse. GMC deliveries rose 50%, on the rising sales of Sierra LD and HD models, up 38 and 46%, respectively. In fact, it was the best second quarter and best first half since 2005 for GMC, aided by Yukon and Yukon XL. Chevrolet Silverado and GMC Sierra sales combined soared 36%, with light-duty models posting robust segment share gains.
Cadillac’s second-quarter retail sales were its best since 2015. Moreover, Cadillac’s total sales surged 55%, leading to the brand’s third consecutive quarter of year-over-year growth.
Fleet sales, accounting for about 14% of General Motors’ total sales, were adversely impacted by pandemic shutdowns a year ago. Nonetheless, fleet sales started to recover as the company started to align production of its most coveted vehicles. This resulted in fleet deliveries rising 69% in the quarter compared to the year-ago period.
The efficiency of General Motors’ supply chain, purchasing, engineering and manufacturing teams, along with its well-connected suppliers and dealers network, boosted the automakers’ second-quarter deliveries and aided it to capture a niche in some of the rampant segments of the market.
However, General Motors closed the quarter with 211,974 units in inventory, lower than the 334,628 seen at the end of the prior-year quarter.
Like most other automakers, General Motors was hobbled by the global semiconductor chip dearth, used in various car parts, since the first part of the year. This forced the automaker to temporarily halt production across several plants in North America.
Nonetheless, the automaker was able to successfully navigate the chip crunch, as was evident by the company’s plans to ramp up production and deliveries of nearly all its vehicles, announced in June. General Motors has been able to bring nearly all of its assembly plants back to operation by diverting the scarce chip parts to the vehicles that are in the highest demand and generate the biggest profits.
During the second quarter, General Motors captured 40.6% of the retail market for full-size pick-ups, up 4.5 percentage points year over year. Based on General Motors’ boost in second-quarter deliveries, it seems the automaker is well positioned in 2021 to lead the industry in full- and mid-size pick-up sales for the seventh consecutive year.
Further, the Detroit auto biggie is taking crucial steps to cater to customers’ future needs, especially in segments having limited capacity. General Motors plans to increase production at Flint Assembly in Michigan, where it builds its heavy-duty full-size pick-ups, by 1,000 vehicles per month starting mid-July. The automaker also plans to return full-size pick-up production to Oshawa Assembly in Canada by the end of this year rather than next year. Moreover, shipments of Colorado and Canyon pick-ups will be up about 30,000 units from mid-May through early July as the workers at the Wentzville plant finish testing those vehicles that were partially built but held at the plant awaiting semiconductor supply.
All in all, General Motors delivered stellar second-quarter sales results, especially in its pick-up truck line-up, which hands down, is the biggest catalyst of its profits. Still, to stay at the top of its game, the automaker will have to keep the semiconductor chipsets flowing in order to keep the vehicles rolling off smoothly.
General Motors, peers of which are Ford (F - Free Report) , Stellantis N.V. (STLA - Free Report) and Nissan (NSANY - Free Report) , currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of General Motors have appreciated 134.2% in the past year, while the industry has witnessed a rise of 118.5%.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>