agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM Sales Propelled 11 Percent Higher by Pickups, Small Cars

July 1, 2011
3 min to read


General Motors today reported that its June sales grew 11 percent thanks in part to a recovery in demand for its full-sized pickups.


Sales of the Chevrolet Silverado and GMC Sierra pickups, which fell in May and were flat in April, snapped back with a 15 percent gain in June. Car sales stayed hot, rising 28 percent, reported Automotive News.

Ad Loading...


Don Johnson, GM's vice president of U.S. sales, said the rebound in pickup sales tracked a gradual drop in gasoline prices throughout the month.


"As people got over the fear of a fuel-price spike, those who actually need a pickup have come back into the market," Johnson said during a conference call on Thursday.


As long as gasoline prices don't spike "dramatically," he expects pickup sales to strengthen in the second half of the year, which traditionally is better than the first half for pickup demand.


Still, Johnson confirmed that GM plans to trim its pickup production by idling plants this month, after inventory swelled amid gasoline-price spikes in the spring. He said pickup inventory is "slightly above where we'd like to be," at 122 days' supply. GM's target range is 100 to 110 days, he said.


Despite the decline in gasoline prices, customers still favored fuel efficiency. Chevrolet sold 24,896 Cruze compacts in June, the third straight month the model topped 20,000 units. The Cruze Eco, the most fuel-efficient version with a 42 mpg highway rating, accounted for 17 percent of the model's sales, up from 15 percent in previous months.

Ad Loading...


Truck brand GMC led GM's four divisions with a 15 percent sales gain from a year earlier, followed by Buick, up 13 percent and Chevy, up 11 percent. Cadillac sales were down 8 percent, which GM blamed on a planned reduction in sales to rental fleets.


Some of GM's sales momentum comes from luring buyers from non-GM brands. Its conquest rate, the portion of buyers not trading in a GM vehicle, was 47 percent in June, up from 40 percent in January.


Johnson attributed the improvement to hits such as the Cruze, which had 55 percent of its buyers come from non-GM brands in June, in addition to buyers of Japanese cars who might have had trouble finding what they wanted due to inventory shortages related to the March 11 earthquake in Japan.


"It's a combination of lower inventory from some of our competitors as well as quite frankly because of the new product that we have in the marketplace," he said.


GM's crossover sales fell 2 percent because of a reduction in sales to fleet buyers. Retail crossover sales rose 24 percent, led by the Chevy Equinox, up 79 percent from June 2010, and the GMC Terrain, up 75 percent.

Ad Loading...


Overall in June, GM's fleet shipments dropped 1 percent, while retail sales rose 16 percent.


After loading on discounts and lease deals to start the year, GM continued a trend of modest incentive spending. In June, its incentives fell about 6 percent from May. Johnson said they stood right around the industry average, which he said was 8.3 percent of the average transaction price in June.


When asked how GM would respond if Japanese rivals Honda Motor Co. and Toyota Motor Corp. ramp up incentives in the second half of the year, Johnson said GM will stick to its goal to be in line with the industry.


"We're going to wait and see what industry does," he said. "But at the end of day, we're going to maintain our competitive position."

More Industry

Photo of two men in suit jackets shaking hands next to new car inside of a dealership
IndustryApril 23, 2026

A New Consumer Culture in the Auto Dealership

Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.

Read More →
Closeup of the side of an Audi car
Industryby Hannah MitchellApril 23, 2026

New-Vehicle Sales Down

A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.

Read More →
Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Ad Loading...
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
electric vehicle next to an urban charging station. EV Demand Diverges. F&I and Showroom logo
Industryby Lauren LawrenceApril 10, 2026

EV Interest Varies Regionally

U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.

Read More →
Ad Loading...
Photo of the rear of a Mercedes GLC 400 electric SUV with a skyline in the background
Industryby Hannah MitchellApril 10, 2026

Brands Weighed on Projected Recalls

Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Ad Loading...
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →