OREANDA-NEWS. General Motors (NYSE: GM) continued to grow its retail sales and market share in February, a trend that began April 2015. Since then, retail deliveries have been up every month compared to a year ago, and retail market share has been up in 10 of 12 months. February retail deliveries totaled 179,958 units, up 7 percent. GM’s estimated retail share is up 0.4 percentage points.

The Chevrolet brand remained the industry’s fastest-growing full line brand in February, with retail deliveries climbing 13 percent compared to a year ago. Estimated retail share is up 1 percentage point on a year-over-year basis. In addition, Cadillac retail deliveries were up 4 percent.

“Our strategy is simple: grow profitable retail share while maintaining discipline with inventory levels and incentive spending, while reducing rental deliveries,” said Kurt McNeil, GM’s U.S. vice president of sales operations.

Due to a planned reduction in rental deliveries, GM’s total sales of 227,825 were down slightly year over year. GM reduced daily rental deliveries by about 16,500 units, or 39 percent in February. GM grew its Commercial business in February for the 28th consecutive month.  

GM expects to operate with about a 70-days supply of vehicles throughout the year in most months, with some months higher or lower. February month-end inventories were at a 67-days supply. GM continues to grow retail market share with incentives below domestic companies and other key competitors.

As a result of lower rental deliveries, GM expects its fleet mix in 2016 to be about 20 percent of total sales, compared with a historical range of 22 to 24 percent. In 2015, GM reduced rental deliveries by about 50,000 units compared to 2014. In the first two months of 2016, rental deliveries are down about 30,000 units, compared to a year ago.

“The redesign of our full-size pickups and SUVs, and the smart bets we made to enter the small crossover and mid-size pickup segments with vehicles like the Chevrolet Trax and Colorado couldn’t have been timed better,” McNeil said. “The economy is growing, Millennials are becoming a major force in the market and we’re doing everything we can to meet retail demand, including increased production of mid-size pickups and investing in additional V8 engine capacity.”

Millennials (customers under age 34) now buy more new vehicles than any generation besides Baby Boomers, and they account for 20 percent of GM sales, up from 5 percent in 2010.

GM’s products plans are tailored to these generational shifts. Redesigned vehicles launching in 2016, including Chevrolet Cruze, Volt, Camaro, Malibu and Trax. At the same time, Buick is expanding its portfolio with the Cascada convertible and Envision crossover, GMC is launching an all-new Acadia crossover, and Cadillac is launching the all-new CT6 prestige sedan and XT5 crossover.

“We continue to be optimistic about the continued strength of the U.S. economy,” said Mustafa Mohatarem, GM’s chief economist. “Employment remains strong, interest rates remain at historically low levels and gas prices are stable, so we expect auto sales to remain strong for the foreseeable future.”

February Retail Sales and Business Highlights vs. 2015 (except as noted)

Chevrolet

  • Chevrolet had its best February sales since 2007, with cars up 34 percent, crossovers up 5 percent and trucks up 3 percent.
  • Malibu was up 87 percent for the model’s best February since at least 1979.
  • Camaro, Cruze and Impala were up 39 percent, 27 percent and 14 percent, respectively. Volt was up 96 percent.
  • Suburban, Tahoe, Traverse and Trax were up 36 percent, 22 percent, 15 percent and 26 percent, respectively.
  • Suburban and Tahoe had their best February since 2008.

GMC

  • Yukon sales were up 12 percent.
  • GMC continues to earn the highest average transaction prices (ATPs) among its competitive set. February ATPs of $42,300 were a record for the month.
  • Denali trim penetration was the highest ever at 24 percent.

Buick

  • Encore and Enclave sales were up 26 percent and 6 percent, respectively. Encore achieved best ever February sales.
  • Buick’s total sales were up 2 percent.

Cadillac

  • Escalade and SRX sales were up 22 percent and 13 percent, respectively.

Average Transaction Prices/Incentives (J.D. Power PIN estimates)

  • ATPs, which reflect transaction prices after incentives, were approximately $34,200 in February, up about $680 from January and more than $3,600 above the industry average.
  • GM’s incentive spending as a percentage of ATP was 12.4 percent, which reflects lower year-over-year spending on trucks and higher spending on passenger cars being replaced with all-new designs. Industry average spending in February was 11.1 percent.

Fleet and Commercial

  • Commercial sales grew 7 percent year over year in February and for the calendar year to date, after growing 38 percent from 2013 to 2015.
  • Government sales were up 14 percent year over year in February, and 3 percent calendar year to date.

Industry Sales

  • GM estimates that the seasonally adjusted annual selling rate (SAAR) for light vehicles in February was 17.7 million units.

General Motors Co. (NYSE:GM, TSX: GMM) 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.