Despite Recalls, General Motors Company's Sales Are Risinghttp://www.fool.com/investing/general/2014/06/03/despite-recalls-general-motors-companys-sales-are.aspx John Rosevear
June 3, 2014
General Motors (NYSE: GM) said on Tuesday that its U.S. sales were up 13% in May, as a strong holiday weekend helped the General to its best monthly sales total since August of 2008.
GM's increase soundly beat analyst estimates, as the company continued to defy expectations that an ongoing recall scandal would impact sales of its latest products.
Strong retail sales suggest that the recall isn't hurting
So far in 2014, GM has recalled over 15.8 million vehicles in North America, a huge number. Many analysts, including your humble Fool, have been concerned that the recalls and attendant publicity would have a negative impact on GM's ongoing sales.
But as was true a month ago, if the recalls are impacting GM's sales, the impact is hard to see. GM's retail sales rose 10% last month, outpacing rival Ford's (NYSE: F) 6% retail gain, as GM's new pickups and other recent models posted strong gains.
Another good month for GM's latest models, including the pickups
Several of GM's most recent models posted strong results. Sales of the well-regarded new Chevy Impala sedan continued to rise, up 23% -- and Corvette sales more than tripled. The new Cadillac CTS sedan rose 39%, and the Cadillac Escalade, also all-new, gained 30%. At Buick, sales of the small Encore SUV more than doubled, while the Regal sedan gained almost 50%.
Some older GM models also posted strong results: The compact Chevy Cruze was up 41%, the Traverse crossover gained 23.5%, and Camaro sales rose 30%.
That last one might seem like a surprise. Chevy's Camaro is an older model, widely expected to be replaced next year. But its key competitors, Ford's Mustang and Fiat Chrysler's (NASDAQOTH: FIATY) Dodge Challenger, are even older. An all-new Mustang and updated Challenger are both due later this year, and Ford and Dodge dealers are selling down the last of the old models right now.
Last year's Cadillac darlings struggled again in May