Low Gas Prices Boost GM Sales 21% in December

GM’s new vehicle sales for November were forecast at 246,000 by analysts at Kelley Blue Book and at more than 262,000 by Edmunds.com.

Cadillac’s total sales dropped 11.1% year-over-year for the month, an improvement over the nearly 19% drop in November. Retail sales fell 8.6% in December, again a sharp improvement from the nearly 20% drop in November. For the year, total Cadillac sales were down 6.5% and retail sales were down 6.1%.

Total Chevrolet deliveries in December were up 20.5% year-over-year. The Chevy Cruze posted a sales decline of 2.5% in December, compared with a gain of about 25% in November. Full-year Cruze sales were up 10%.

Chevy Silverado pickup sales rose 35.8% in December and were up 10.3% for the full year. Chevy’s full-size Tahoe SUV saw a sales boost of 30.2% year-over-year in December, with sales up 17% for the full year.

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Falling gasoline pump prices virtually always improve sales of full-size pickups and SUVs, and with gasoline fast approaching the $2 per gallon level, it is no surprise to see sales of Tahoe and Suburban (up 7.3% for the full year) surging. Sales of the mid-size Chevy Equinox SUV jumped 23.7% year-over-year in December, but they were up just 1.7% for the calendar year. Remember, gas prices did not begin to fall until July.

GMC’s new SUVs and pickups continue to be big hits, and GMC Sierra pickups sold 23,436 units in December, up 31.3% year-over-year, and total Sierra sales for the year were up 14.9%. GMC brand sales were up 23% in December and 11.3% higher for the year.

GM said its average transaction price in December was the highest ever at $36,300.

For the auto industry as a whole, GM’s forecast for the seasonally adjusted annual rate (SAAR) of sales is 16.9 million in December, down from an estimate of 17.1 million in November.

GM’s stock price was down about 1.7% Monday morning, at $34.25 in a 52-week range of $28.82 to $40.94.

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