GM US sales drop 28 per cent in May
General Motors reported an annual 28 per cent drop in May US sales Tuesday as the automaker announced plans to close four North American truck and sport utility vehicle plants.
By Agencies |
CHICAGO: General Motors reported an annual 28 per cent drop in May US sales Tuesday as the automaker announced plans to close four North American truck and sport utility vehicle plants amid a sharp drop in demand for the gasoline-guzzling vehicles.
GM saw a strong increase in demand for its more fuel-efficient cars and crossover vehicles - sport utility vehicles built on car platforms - but it "could not make up for soft truck demand and a decline in fleet deliveries" impacted by a strike at key supplier American Axle and two GM assembly plants.
GM said approximately 15,000 to 18,000 sales were lost in May, or will be rescheduled, due to the work stoppages.
May sales totaled 272,363 vehicles while sales for the first five months of the year were down 16.1 per cent at 1,339,005.
"Obviously, most trucks segments were weak across the industry - and we were no exception," Mark LaNeve, vice president of GM North America vehicle sales, service and marketing, said in a statement.
"Today's production adjustment announcement at the annual GM shareholders meeting shows that we are intent on increasing car and crossover production and leveraging our competitive position for the economic recovery while acknowledging the impact of a challenging economic environment on truck sales."
Car sales fell 14 percent to 130,115 in May from a year ago and 6.7 per cent to 580,283 vehicles so far this year, although GM saw double-digit grow with several popular models.
"We are very pleased with our performance in many critical car and crossover products as consumer preferences continue to shift toward these vehicles," LaNeve said.
Light truck sales were down 37 percent to 138,777 in May and 22 per cent to 746,623 for the first five months of the year.
GM saw a strong increase in demand for its more fuel-efficient cars and crossover vehicles - sport utility vehicles built on car platforms - but it "could not make up for soft truck demand and a decline in fleet deliveries" impacted by a strike at key supplier American Axle and two GM assembly plants.
GM said approximately 15,000 to 18,000 sales were lost in May, or will be rescheduled, due to the work stoppages.
May sales totaled 272,363 vehicles while sales for the first five months of the year were down 16.1 per cent at 1,339,005.
"Obviously, most trucks segments were weak across the industry - and we were no exception," Mark LaNeve, vice president of GM North America vehicle sales, service and marketing, said in a statement.
"Today's production adjustment announcement at the annual GM shareholders meeting shows that we are intent on increasing car and crossover production and leveraging our competitive position for the economic recovery while acknowledging the impact of a challenging economic environment on truck sales."
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Car sales fell 14 percent to 130,115 in May from a year ago and 6.7 per cent to 580,283 vehicles so far this year, although GM saw double-digit grow with several popular models.
"We are very pleased with our performance in many critical car and crossover products as consumer preferences continue to shift toward these vehicles," LaNeve said.
Light truck sales were down 37 percent to 138,777 in May and 22 per cent to 746,623 for the first five months of the year.
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