Boston, MA 02/04/2014 (wallstreetpr) – General Motors Company (NYSE:GM) has delivered not so good news on its total sales for the month of January F2014, the net sales during this period dropped by 12%. The company was forced to deliver fewer cars than expected attributed to the harsh environmental conditions that were prevalent during this period. The company was forced to deliver a total of 170,000 in the US for the month of January with retail sales slumping down by a high of 10% with fleet deliveries declining by 18%. The freezing weather conditions that was experienced in January did hamper sales for many companies and not only GM. The company still exudes confidence that vehicle sales for the year will still hit the targeted mark of 16-16.5 million. This will be a new high compared to record sales of 16.2 million that was reported in 2007.
GM’s Sales report
General Motors Company (NYSE:GM)’s Chevrolet Silverado and Sierra pickup saw their January sales declining by 17 % in the month of January, this two brands only contributed to 23.2% of GM’s total sales as compared to the same period last year where they contributed 24.8% in total sales. Chevrolet sales declined by 13.3% with Cruze sedan being the only reporting increase in sales of 15.9% representing a total sales of 16,828 units
GM increases spending
General Motors Company (NYSE:GM) seems to be the only automaker that increased its spending in the US in the effort of increasing its sales margins, this move has not had a positive impact with incentives declining by 3.6% compared to January F2013. GM inventory is still high at the current market condition with an 81 day supply with 60 days being considered ideal in the market. Large inventories are usually not that good as they usually result in additional costs of keeping the cars in Lots and greatly affect profits.
General Motors Company (NYSE:GM) closed trading on Monday January 3, 2014 at a low of $35.25 a drop of 2.30%
