GM Sees Q3 Fall but Remains Optimistic about “Pandemic-Induced Demand”

  • 2020-10-05 12:00:00
  • Reporter

 

For the third quarter of this year, General Motors Co.'s total auto sales fell 10% compared to the same quarter of 2019, but the automaker pointed to stronger September numbers, saying it sees indications of a rebound. 

According to GM, sales improved each month within the three-month period, with a “significant” rebound in September, with year-over-year sales increases by the end of the month. 

GM reported that it was seeing strong sales for its SUVs and pickup trucks and that its factories producing large pickup and full-size SUVs were all operating on three shifts and at maximum overtime. 

The auto manufacturer explained that sales have been driven by low auto loan interest rates, as well as by “pandemic-induced demand,” which includes the perception of private vehicles as a “safe space” for local and long-distance transportation, as well as financially comfortable households possibly using money saved on restaurants, cancelled vacations and entertainment towards the purchase of a new vehicle. Additionally, urban consumers are said to be eyeing vehicle ownership as they lean towards suburban living or weekend getaways. 

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