Mr. Kurt McNeil reports

GM WAS THE FASTEST GROWING AUTOMAKER IN MARCH, DRIVEN BY CHEVROLET AND BUICK

General Motors Company, which grew its retail sales faster than any other full-line automaker in 2016, outpaced the industry once again in March. The company also gained retail share in the first quarter of 2017.

"The economy is strong and we see more growth ahead for our brands," said Kurt McNeil, U.S. vice-president of sales operations. "More people are working, consumer confidence is at a 16-year high, fuel prices are low, and Chevrolet, Buick, GMC and Cadillac have a wave of new crossovers to compete in the industry's biggest and hottest segments."

At Buick, crossovers are expected to account for more than 75 per cent of retail deliveries in 2017, up from 66 per cent in 2016, driven by the Encore, Envision and Enclave.

GMC, which has the highest average transaction prices (ATPs) of any non-luxury brand, will launch the all-new 2018 Terrain in late summer, complementing the redesigned Acadia that went on sale in late summer 2016.

Cadillac will benefit from a full year of production of the new XT5 crossover, which is now the second best-selling vehicle in its segment.

Chevrolet, which grew retail market share in 2015 and was the industry's fastest-growing brand in 2016, is particularly well positioned. Chevrolet had its best March and first quarter retail sales since 2007.

"Chevrolet will have the industry's broadest and freshest lineup of utility vehicles led by the all-new 2018 Equinox and Traverse, plus we have a unique three-truck pickup strategy and a dominant position in large SUVs," Mr. McNeil said. "We also have a first-mover advantage in many segments. It will be years before key competitors are able to launch rivals to the Chevrolet Bolt EV, Colorado and Trax."

Highlights (versus 2016)

First quarter overview

• GM's retail sales were 546,838 units, up 1.9 per cent, and retail market share was up 0.2 percentage point to an estimated 16.8 per cent. The gains were primarily driven by crossovers, which were up 21 per cent. Truck deliveries were up half a percentage point.
• Chevrolet increased its first quarter retail share by an estimated 0.1 percentage point, as did GMC.
• Commercial deliveries were up 4 per cent and daily rental deliveries were down 8 per cent, or about 6,000 units. Total fleet sales were down 3 per cent.
• Total sales were 689,521 units, up 1 per cent and market share was up an estimated 0.3 percentage point to an estimated 16.7 per cent.
• Average transaction prices were approximately $34,000, in line with last year's first quarter.

March overview

• Retail sales were 203,113 units, up 5 per cent, and market share was up 0.6 percentage point to an estimated 16.1 per cent.
• Chevrolet's estimated retail market share increased 0.4 percentage point and Buick was up 0.3 percentage point.
• Total sales were 256,224 units, up 2 per cent, and market share was up an estimated 0.4 percentage point to 15.9 per cent.
• Commercial deliveries were up 3 per cent driven by a 67-per-cent increase in Malibu deliveries and strong pickup and large van sales. Daily rental sales down 18 per cent, or more than 5,100 units. Fleet sales were down 9 per cent.

Brand highlights (versus 2016)

Chevrolet crossovers

• On a retail basis in March, the Trax was up 51 per cent, the Equinox was up 26 per cent and the Traverse was up 24 per cent.
• For the quarter, Trax retail sales were up 54 per cent, the Equinox was up 16 per cent and the Traverse was up 7 per cent.
• Bolt EV sales in the quarter were 3,092 units, with limited availability. The days to turn is exceptionally low at 14 days.

Chevrolet trucks

• Chevrolet had its best first quarter truck sales since 2008, up 6 per cent. Key drivers were the Suburban, up 26 per cent; the Tahoe, up 11 per cent; and strong full-size van sales to small business customers and fleets. Silverado sales were essentially equal to a year ago.
• Chevrolet retail truck sales in the first quarter were up 2 per cent, with the Tahoe up 9 per cent, the Colorado up 7 per cent and the Suburban up 5 per cent. Silverado sales were essentially equal to a year ago.
• The Tahoe and Suburban had their best March total sales since 2008, and their best first quarter total and retail sales since 2008. The Colorado had its best first quarter retail sales since 2005.

Chevrolet cars

• Retail deliveries were very strong in March, up 9 per cent. The drivers were the Cruze, up 63 per cent; the Sonic, up 14 per cent; the Spark, up 50 per cent; the Volt, up 15 per cent; and the Camaro, up 2 per cent.
• During the quarter, retail car deliveries were down 11 per cent, reflecting industry-wide changes in customer demand. However, Cruze retail sales were up 22 per cent during the quarter, the Spark was up 37 per cent and the Volt was up 39 per cent.
• The Volt had its best first quarter total and retail sales ever.

Buick sales

• Buick had its best March retail sales since 2005, with sales up 22 per cent.
• The LaCrosse was up 60 per cent on a retail basis in March, the Encore was up 17 per cent and Regal was up 7 per cent.
• On a total sales basis, it was Buick's best March since 2006, with deliveries up 15 per cent.
• First quarter retail deliveries were the highest since 2004, driven by a 29-per-cent increase in crossover sales.
• The Encore has posted seven consecutive months of year-over-year sales gains, and it had its best-ever March and first quarter sales.
• The Envision had its best month since launch.

GMC sales

• Total GMC sales were up 12 per cent in March, driven by a 47-per-cent increase in crossover deliveries. The Acadia, which was redesigned last year, was up 84 per cent and the Terrain was up 14 per cent.
• The Yukon XL was up 17 per cent.
• March was the highest-ever month for Denali models, at 29 per cent of GMC retail sales.
• Total GMC sales for the first quarter were the best since 2000, with deliveries up 10 per cent.
• First quarter retail deliveries were up 4 per cent, with the Acadia up 30 per cent and Sierra HD models up 22 per cent.

Cadillac sales

• Cadillac XT5 retail sales in March were 22 per cent higher than the outgoing SRX and ATPs were about 9 per cent higher.
• Cadillac's ATPs continue to be in the upper echelon of luxury brands at more than $54,000.

Full-year guidance

• The company believes strong car-buying fundamentals are reflected in the retail component of the light vehicle SAAR (seasonally adjusted annual rate), which was 14 million in March, up 300,000 versus a year ago. The retail SAAR for the first quarter was 14.3 million, up 100,000.
• Ten all-new or recently redesigned crossovers are expected to drive GM's sales and share higher in 2017.
• GM's deliveries to daily rental companies are expected to decline for the third year in a row.
• The company expects inventory in the second quarter to be lower than the first quarter, in a range around 90 days of supply. The decline reflects strong sales, lower car production, and strategic, launch-related growth in truck and crossover stocks.
• The company expects to end 2017 at essentially the same inventory levels as 2016 on a days supply basis, but with fewer cars and more trucks and crossovers in stock.
• As expected, incentives were down sharply from February, 2017, according to J.D. Power PIN estimates. Spending as a percentage of average transaction price (ATP) declined from approximately 14.9 per cent to about 13.5 per cent.
• The launches of new crossovers and adjustments to passenger car inventories will help moderate incentive spending going forward.

General Motors and its partners produce vehicles in 30 countries and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands.

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