Projections show GM July sales up 14 percentPublished: 7/26/14 @ 12:00
Estimates by an automotive pricing and information website for new- and used-car buyers and dealers show General Motors’ U.S. new-car sales for July will be up 14.5 percent from last year.
July auto sales numbers are expected to be released Aug. 1.
TrueCar released its sales forecast for July on Friday, showing overall vehicles sales from all manufacturers, including fleets in the U.S., reaching more than 1.4 million — an increase of 9.9 percent from last July.
“I think that what is a surprise is they have had this kind of growth,” said Eric Lyman, vice president of industry insights for TrueCar, on GM’s numbers.
TrueCar has GM with 268,000 units sold, beating all other manufacturers. Ford came in second with 211,000 units sold and Toyota third with 210,000 units sold.
“July sales are red hot and better than expected, with our forecast up about 10 percent over last year,” said John Krafcik, president of TrueCar.
He added that TrueCar continues to see a demand for trucks and utility vehicles.
An interesting fact to take into consideration are the number of consumers heading to the dealership to have their cars repaired and then end up looking at the new models in the showroom, Lyman said.
“You are exposing them to this brand-new product portfolio,” Lyman said.
This can “really change the perception” and possibly encourage new users to try a new or used GM model, he added.
“I would say sales are up for that reason,” said David Cole, partner for Cole Valley Auto Group on Elm Road in Warren.
TrueCar has no specific data to show that car owners who have had their vehicles recalled purchase other GM cars. Lyman said it is an easy assumption to make, however.
“That is the lemonade that you are making from the lemons of the recall,” Lyman said.
TrueCar has GM’s market share up to 18.6 percent compared with last year’s 17.8 percent.
In addition, GM’s incentive spending is estimated to be down 5.9 percent from last July.
Overall, TrueCar estimates a total of 16.35 million units will be sold this year compared with 15.6 million last year — about a 5 percent increase.
August also is expected to be a good car-sales month for both buyers and sellers. Transaction prices are typically lower with newer models coming in, Lyman said.
“Sales are picking up, and automakers are responding to that increase in demand,” Lyman said.
TrueCar did not break down the number of models sold for each make.