Arthur J. Villasanta – Fourth Estate Contributor
Detroiit, MI, United States (4E) – General Motors Company reported revenues of $35.79 billion in the third quarter from selling fewer vehicles (mostly trucks) but at higher prices.
Q3 revenue was up 6 percent from $33.62 billion year-on-year. Analysts expected GM to generate $34.85 billion during the third quarter. The result saw GM’s sales soar yesterday by some 10 percent in premarket trading.
GM said it sold fewer cars but raised prices in the U.S. by an average of about $800 per vehicle to more than $36,000. This was a new record for transaction prices and $4,000 above the industry average. It also said Cadillac sales in China set a new record, up 4 percent over the previous year and 20 percent year-to-date.
GM’s Q3 vehicle sales volume fell by 14.7 percent year-on-year. Sales fell across every region and every brand. Cadillac saw the smallest drop in sales among GM’s marquee brands (3.9 percent) from the previous year.
GM also posted a profit of $2.5 billion ($1.75 a share) compared to a loss of $2.98 billion ($2.03 a share) year-on-year. The 2017 loss sprang from the company’s sale of its European business to Groupe PSA.
“Our disciplined approach to the U.S. market, combined with strength in China and further growth of GM Financial, drove a very strong quarter,” said GM CFO Dhivya Suryadevara. “We will continue to take actions to mitigate headwinds including foreign currency volatility and commodity costs.”
Suryadevara said GM expects a strong fourth quarter performance, with solid sales of highly profitable crew-cab trucks.
Sales of some Chevrolet and GMC truck models exceeded expectations. These best sellers were the Silverado LTZ and High Country, and the GMC Sierra SLT, Denali and the AT4 crewcab models.
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