General Motors Co. in Detroit reports it sold 582,401 vehicles in the U.S. in the second quarter (Q2) of 2022, which is a 15 percent year-over-year drop. At the same time, the automaker gained 1 point of U.S. market share, now at 16.3 percent, according to J.D. Power in Troy.
“GM’s sales and market share have grown each of the last three quarters, even with lingering supply chain disruptions,” says Steve Carlisle, executive vice president and president for North America at GM. “Our long-term momentum will continue to build thanks to the launches of groundbreaking new EVs like the GMC Hummer EV and Cadillac Lyriq, and the tremendous customer response to the Chevrolet Silverado and GMC Sierra.”
Outside the U.S., the company has signed a letter of intent with Shanghai’s Pudong New Area government for the automakers intended investment of $100 million in the GM Premium Import business.
“Our latest agreement demonstrates GM’s long-term confidence in Pudong, Shanghai and the Chinese market,” says Julian Blissett, GM executive vice president and president of GM China. “It will enable us to capitalize on emerging opportunities to delight consumers with a greater array of products and services.”
The new Premium Import business, tailored for China, will present a curated collection of iconic GM products through an innovative platform-based business model. The portfolio will range from full-size SUVs and pickup trucks to performance cars. It will address evolving demand in the niche market, complementing GM’s locally produced model and brand lineup.
In the U.S., GM extended its leadership in the full-size pickup truck retail market share for the 13th consecutive quarter, despite very low inventory, with 203,041 combined total sales of the Chevrolet Silverado and GMC Sierra. Their estimated retail market share was 44 percent.
The Chevrolet Silverado remains the fastest growing full-size pickup truck in the industry, with Silverado HD recording its best first half in retail sales since 2007.
Pent-up demand and improved availability helped drive large year-over-year increases in deliveries of the Chevrolet Camaro, up 63 percent; Chevrolet Colorado, up 52 percent; Chevrolet Malibu, up 563 percent; Cadillac XT4, up 116 percent; and Cadillac CT5, up 70 percent.
GMC delivered its best-ever first half retail market share. Total sales of the GMC Canyon grew 40 percent and GMC Terrain grew 37 percent in the quarter. The GMC Sierra HD, which was up 31 percent in the quarter, delivered its best second quarter and first half on record.
GM’s commercial, government, and daily rental deliveries were up a combined 29%, with each category posting double-digit growth as customers took advantage of improved availability to refresh and expand their fleets, which reflects strong employment and the recovery in the travel and leisure industries.
Sales to commercial and government customers were 73 percent of the fleet sales mix. Commercial demand was especially strong for full-size vans, up 12 percent; full-size pickups, up 14 percent; medium-duty trucks, up 13 percent; and midsize pickups up 65 percent.
Electric vehicle sales were more than 7,300 units, including some of the first deliveries of the BrightDrop Zevo 600 and GMC Hummer EV Pickup, as well as the resumption of Chevrolet Bolt EV and Bolt EUV production.
Cadillac Lyriq production is accelerating, with initial deliveries in process. Orders for the 2023 model year sold out within hours and preorders for the 2024 model opened on June 22.
GM will gradually increase production of the Cadillac Lyriq and GMC Hummer EV Pickup in the second half of 2022. Ultium Cells will begin producing cells in Ohio to support expanded EV manufacturing in August.
GM vehicle production was strong during the second quarter and the company finished the month with 247,839 vehicles in dealer inventory, including units in-transit to dealers. However, GM’s second quarter vehicle wholesale volumes were impacted by the ongoing semiconductor supply shortage and other supply chain disruptions mostly in June.
As a result, GM will hold about 95,000 vehicles manufactured without certain components in company inventory until they are completed and will recognize revenue when they are sold to dealers, which is expected to happen throughout the second half of 2022. The impact of these events, which is not expected to impact GM’s full-year earnings guidance, is discussed in an SEC Form 8-K filed today.
“We appreciate the patience and loyalty of our dealers and customers as we strive to meet significant pent-up demand for our products, and we will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible,” says Carlisle.
In related news, Aditi Shah of Reuters reported GM has called off the sale of a shuttered plant in India to China’s Great Wall Motor after the company failed to obtain regulatory approvals.
GM struck a deal in January 2020 to sell the plant to Great Wall, with the Chinese SUV-maker expected to pay up to $300 million as part of a broader plan to invest $1 billion to establish a presence in India’s growing car market. The agreement, which was extended twice, expired on June 30, Reuters reports.
“We have been unable to obtain the required approvals within the time frame of the deal,” George Svigos, executive director of communications at GM International, told Reuters. “Our strategy in India remains unchanged and we will now explore further options for the sale of the site,” adding the company “hopes to achieve a price that reflects the value of the asset.”
To read the full Reuters report, click here.