Rick & the Board are doing a bang up job
General Motors May sales fall 27.5% - update 1
Detroit, Michigan-based GM noted that a sharp increase in sale of fuel efficient cars and crossover vehicles could not make up for softness in truck demand and a sharp decline in fleet deliveries impacted by the strike at American Axle. The company added that truck sales have been soft throughout the industry.
The auto sales result comes on the heels of the company revealing that it would cease production at four plants that builds pickups, SUVs and medium-duty trucks, as part of its strategy to focus on small cars. GM board has also approved the production of a new small Chevrolet car and the Chevy Volt electric vehicle. In addition, GM said it is considering strategic options for its iconic Hummer brand, ranging from a complete revamp of the product lineup to a partial or complete sale of the brand.
Interestingly, Standard & Poor's Ratings Services said today that its ratings on GM are not immediately affected by the company's announcement today that it will cease production at four North American truck plants over the next two years.
Total vehicle sales for May declined 27.5% to 272,363 from 375,682 in the year-ago month. On an adjusted basis, total sales declined 30.2%.
Total car sales fell 13.8% to 130,115 from 150,979, while total truck sales decreased 27.5% to 272,363 from 375,682 in last year. On an adjusted basis, car sales declined 17% and truck sales were down 39%.
Total light truck sales for May were 138,777, down 36.9% from 220,077 in the prior year month. Total light vehicle sales dropped 27.5% to 268,892 from 371,056.
There were 27 selling days in May 2008, compared to 26 selling days in the year-ago month.
GM said about 15 thousand to 18 thousand sales units of production were lost in May due to the American Axle work stoppage.