General Motors Reports Higher 3Q Sales But Inventory Running Low
General Motors on Wednesday reported higher third-quarter US auto sales and lower car inventories as it contends with an autoworker strike now in its third week.
The biggest US automaker sold 738,638 autos in the third quarter, up 6.3 percent from the year-ago period, but about 10,000 below a projection from Edmunds.com.
Strong categories included truck models under the Chevrolet and GMC brands. GM’s car inventory stood at 759,633, down almost 50,000 since the second quarter, the company said in a brief news release that included none of the usual commentaries from executives.
Nearly 50,000 US autoworkers have been on strike since September 16 as the biggest US auto company and the UAW spar over wages, health benefits, temporary workers and job security.
A report on Tuesday from JPMorgan Chase estimated that the strike had cost GM about $1 billion so far.
Among other companies, Ford reported a 4.9 percent drop in US sales compared with the year-ago period to 580,251, with higher truck sales helping offset a nearly 30 percent drop in sedans and somewhat lower sales of sport utility vehicles.
Ford Vice President Mark LaNeve said the performance is consistent with the strategy for 2019 to be a “transitional” year as Ford phases out smaller autos that have been selling poorly in the United States.
“Our truck, van, and commercial businesses continued to be strong in the third quarter, with record van sales and continued F-Series sales leadership,” LaNeve said in a statement.
Fiat Chrysler’s sales were essentially flat compared with the year-ago period at 565,034.
The company pointed to the continued strength of “muscle” cars like the Dodge Challenger and Charger and Ram pickup trucks.
Autotrader executive analyst Michelle Krebs said the Ram trucks could benefit from GM’s travails in the coming period as dealers run low on GM trucks made at a plant in Mexico that has been idled due to the UAW strike.
“Dwindling inventory comes at a time of year when pickup sales are strong and at a time when GM is in launch mode,” Krebs said.
“This will put the Chevrolet Silverado even further behind the popular Ram in sales.
Most importantly, fewer pickup truck sales will impact Q3 and now Q4 profits at GM since pickup trucks account for the bulk of income.”
Shares of GM were down 3.9 percent at $34.72 on Wednesday.
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Ford also fell 3.9 percent to $8.55, while Fiat Chrysler lost 1.3 percent to $12.56.
