“Has GM lost market share? Yes.”
Alan Batey, President, GM North America,
Wall Street Journal, July 6, 2016
From 17.7 percent in the first-half of 2015, General Motors’ U.S. market share tumbled by more than a point to 16.6 percent in the first-half of 2016.
But, GM’s North American president points out in a Wall Street Journal opinion piece, profitability is on the rise.
TrueCar estimates that, as a percentage of the average transaction price, GM’s incentive spend in June 2016 fell by half-a-percentage point to 10.9 percent, year-over-year. As for the average transaction price, TrueCar says GM’s rose 6.5 percent in June 2016 to $36,489. That is 9.4-percent higher than Fiat Chrysler Automobile’s June 2016 ATP, which also required greater incentives to achieve according to TrueCar. Meanwhile, Batey wrote in The Journal that GM has “reduced low-margin sales to daily rental companies in the U.S. by 88,500 units.”
This explains the marriage of two conflicting subjects: GM’s decreased volume in a growing market and GM’s corresponding increase in profitability. (Read More…)