General Motors on Thursday reported a 40 percent jump in second-quarter US sales on strong demand for its sport utility vehicles and said the trend would continue into 2022.
Lower interest rates, government incentives and a preference for private vehicles due to the COVID-19 pandemic have boosted auto demand in the United States, even as prices rise due to tight inventories following global semiconductor shortages. happened.
According to industry consultants JD Power and LMC Automotive, consumers are buying more expensive vehicles despite smaller discounts, leading to increased profitability for automakers and retailers.
GM said its Chevrolet Bolt EV delivered a record second quarter with total Chevrolet deliveries up 31 percent, while sales of its Buick’s premium SUV increased by 86 percent.
“The US economy is booming, consumer spending is strong and jobs are plentiful,” GM’s chief economist Allen Buckberg said in a statement.
“Consumer demand for vehicles is also strong, but constrained by very tight inventory.”
Shares of the US automaker were up 0.6 percent at $59.49 in morning trade as its US auto sales rose to 688,236 vehicles in the quarter.
“I am not worried though there is demand and the economy is improving. Also it appears that the worst chip shortfall for Auto will be Q2, so things should be fine from here,” said Morningstar analyst David Whiston.