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General Motors (GM) Second Quarter Sales Increase 19% Y/Y
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General Motors Company (GM - Free Report) reported a rise of 19% in U.S. vehicle sales in the second quarter of 2023 compared with the same quarter of 2022. Last year, the automaker was struggling with sector-wide supply chain issues.
During the second quarter, GM sold 691,978 new vehicles, up from 582,401 vehicles during the second quarter of 2022 and 600,000 vehicles during the first quarter of 2023.
Per the auto industry forecasters, new vehicle sales in the United States have likely increased by 16% to 18% during the reported quarter on a year-over-year basis. For the full year 2023, Cox Automotive has increased new vehicle sales projections to 15 million units for the industry, up from 2022 sales of 13.9 million units.
During the first half of the year, General Motors sold 1,295,186 new vehicles. Its retail sales increased by 15%, whereas its GM Envolve business moved north by 30%. GM also retained its top spot as the country’s largest auto manufacturer for the first half of the year.
Year over year, sales of GM’s Chevrolet, Cadillac, Buick and GMC increased by 17%, 15%, 48% and 18%, respectively.
During the first half of 2023, GM reported EV sales of 36,300 units or only 2.8% of total sales. The automaker anticipated producing 50,000 EVs during the first six months of the year and expects to produce 100,000 during the last six months. The same expectations were reiterated by the company’s spokesperson. They said that sales lag production due to logistics and inventory on dealer lots. Further details on the production will be discussed during GM’s second-quarter earnings on Jul 25.
The Chevrolet Bolt models that contributed to nearly 93% of total EV sales in the first half of the year will be discontinued later this year. The legendary automaker has been struggling to ramp up its EV productions.
Mary Barra, CEO of GM, said that slower-than-expected domestic battery production has constrained the output of new EVs.
During the next half of 2023, GM is set to launch new EV models, including Chevrolet Silverado EV Work Truck, Chevrolet Silverado EV RST First Edition, Chevrolet Blazer EV, Chevrolet Equinox EV, Cadillac CELESTIQ EV and Cadillac ESCALADE IQ EV.
Some other top-ranked players in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) and Li Auto, Inc. (LI - Free Report) .
Allison Transmission manufactures fully automatic transmissions for medium- and heavy-duty commercial and heavy-tactical U.S. defense vehicles. ALSN’s shares are up 34.6% year-to-date.
Allison has a Zacks Rank #2 and a VGM score of A. The company’s expected earnings growth rate for the current year is 18.44%.
Li Auto, Inc. (LI - Free Report) designs, develops, manufactures and sells premium smart electric SUVs. Li’s shares are up 75.3% year-to-date.
Li Auto has a Zacks Rank #1 and a VGM score of B. The company’s expected earnings growth rate for the current year is 2,400%.
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General Motors (GM) Second Quarter Sales Increase 19% Y/Y
General Motors Company (GM - Free Report) reported a rise of 19% in U.S. vehicle sales in the second quarter of 2023 compared with the same quarter of 2022. Last year, the automaker was struggling with sector-wide supply chain issues.
During the second quarter, GM sold 691,978 new vehicles, up from 582,401 vehicles during the second quarter of 2022 and 600,000 vehicles during the first quarter of 2023.
Per the auto industry forecasters, new vehicle sales in the United States have likely increased by 16% to 18% during the reported quarter on a year-over-year basis. For the full year 2023, Cox Automotive has increased new vehicle sales projections to 15 million units for the industry, up from 2022 sales of 13.9 million units.
During the first half of the year, General Motors sold 1,295,186 new vehicles. Its retail sales increased by 15%, whereas its GM Envolve business moved north by 30%. GM also retained its top spot as the country’s largest auto manufacturer for the first half of the year.
Year over year, sales of GM’s Chevrolet, Cadillac, Buick and GMC increased by 17%, 15%, 48% and 18%, respectively.
During the first half of 2023, GM reported EV sales of 36,300 units or only 2.8% of total sales. The automaker anticipated producing 50,000 EVs during the first six months of the year and expects to produce 100,000 during the last six months. The same expectations were reiterated by the company’s spokesperson. They said that sales lag production due to logistics and inventory on dealer lots. Further details on the production will be discussed during GM’s second-quarter earnings on Jul 25.
The Chevrolet Bolt models that contributed to nearly 93% of total EV sales in the first half of the year will be discontinued later this year. The legendary automaker has been struggling to ramp up its EV productions.
Mary Barra, CEO of GM, said that slower-than-expected domestic battery production has constrained the output of new EVs.
During the next half of 2023, GM is set to launch new EV models, including Chevrolet Silverado EV Work Truck, Chevrolet Silverado EV RST First Edition, Chevrolet Blazer EV, Chevrolet Equinox EV, Cadillac CELESTIQ EV and Cadillac ESCALADE IQ EV.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked players in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) and Li Auto, Inc. (LI - Free Report) .
Allison Transmission manufactures fully automatic transmissions for medium- and heavy-duty commercial and heavy-tactical U.S. defense vehicles. ALSN’s shares are up 34.6% year-to-date.
Allison has a Zacks Rank #2 and a VGM score of A. The company’s expected earnings growth rate for the current year is 18.44%.
Li Auto, Inc. (LI - Free Report) designs, develops, manufactures and sells premium smart electric SUVs. Li’s shares are up 75.3% year-to-date.
Li Auto has a Zacks Rank #1 and a VGM score of B. The company’s expected earnings growth rate for the current year is 2,400%.