Remains the number one US automaker.
You’d think that GM would be experiencing something of a sales slump these days. After all, more than 15.8 million of its cars have been recalled globally this year alone, and the ignition switch defect has been the cause of at least 13 fatalities (a number that will likely increase). Despite all of that, sales of GM cars and trucks remain strong. In fact, the automaker is beating the industry average this month and dealers throughout the US remain upbeat.
Only a couple of months ago, GM dealers were regularly receiving calls from concerned customers regarding the safety of their cars, specifically the Saturn Ion and Chevrolet Cobalt. But last month, all four of GM’s US brands reported sales increases. Through last week alone, GM retail sales were up by 3.5 percent compared to the same period last year. That number is also higher than the industry average of 0.5 percent. Even some stock market advisory firms are encouraging their clients to aggressively buy GM stock, claiming "there has been no measurable impact in the marketplace, and we believe that will continue."
Some GM dealers have even reported selling new cars to recall customers. So why are GM’s sales still solid? For starters, many people held off buying a new car for quite some time due to the slow economy. Also, many customers associate the recalls with older and discontinued models, not new ones. In other words, people still have faith in the so-called "New GM."