The Modest Man
## Demand for New Vehicles Remains Strong
General Motors (GM) reported an 18.8% increase in U.S. vehicle sales in the second quarter compared to the same period last year when the company faced supply chain issues. The automaker sold 691,978 vehicles from April to June, a significant improvement from the 582,401 vehicles sold in the second quarter of 2022. This increase also reflects a sequential growth compared to GM’s first-quarter sales of just over 600,000 new cars and trucks.
The sales performance of GM, as well as other automakers like Honda, Nissan, and Stellantis, indicates that there is strong demand for new vehicles. As inventories of cars and trucks improve from historically low levels during the COVID-19 pandemic and supply chain problems, consumers are showing an increased interest in purchasing new vehicles. Industry forecasters predict that industry sales will have increased by 16% to 18% in the second quarter compared to the previous year.
## GM’s Dominance in the U.S. Market
GM managed to maintain its position as the largest automaker in the United States during the first six months of the year. With sales increasing by 18.3% to nearly 1.3 million vehicles, GM reclaimed its title from Toyota, which had been the top-selling car company in 2021. This marked the first time since 1931 that GM wasn’t the best-selling car company in the U.S. In June, Toyota reported sales of more than 1 million vehicles in the U.S., demonstrating its strong presence in the market as well.
## EV Sales and Production Challenges
GM’s sales of electric vehicles (EVs) reached over 36,300 during the first half of the year, with 15,652 sales in the second quarter. However, EVs accounted for only 2.8% of the company’s total sales during this period. The majority of GM’s EV sales were from the Chevrolet Bolt models, which will be discontinued later this year. The slow production ramp-up of GM’s new EVs, such as the GMC Hummer and Cadillac Lyriq, has been a point of criticism. These new EVs, along with their batteries known as Ultium vehicles, are crucial for GM’s future in the EV market.
GM CEO Mary Barra acknowledged the challenges faced in increasing production of newer EVs. The company’s domestic production of batteries has taken longer than expected, causing production to trail behind sales. Barra mentioned that she wishes she could have accelerated the company’s EV efforts but assured that they are working as fast as they can. GM has important EV launches planned for the second half of the year, including new versions of popular models like the Chevrolet Silverado, Blazer, and Equinox. In addition, they will introduce a new electric delivery van and a high-end Cadillac EV called the Celestiq.
## Summary
General Motors reported strong sales growth in the second quarter, marking an 18.8% increase compared to the subdued results of the previous year. The demand for new vehicles remains robust as inventories improve and supply chain issues are resolved. GM’s dominant position as the largest automaker in the U.S. was reinforced as their sales surpassed competitors’ in the first six months of the year. However, GM has faced challenges in increasing production of their EVs, with the majority of their sales still coming from the outgoing Chevrolet Bolt models. Nonetheless, they have important EV launches planned for the second half of the year, including new versions of popular models and high-end vehicles like the Celestiq.
