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General Motors Co GM

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GM's Third-Quarter Sales Show Improvement as the Quarter Continued

Analyst Note

| David Whiston, CFA, CPA, CFE |

Many automakers reported third-quarter U.S. auto sales on Oct. 1. An exact sales tally won’t be known until later because Ford does not report the same day as the rest of the industry. The September seasonally adjusted annualized selling rate, or SAAR, per Wards was 16.34 million, which is below September 2019’s 17.08 million but is far better than the April coronavirus induced low of 8.73 million. GM estimates a quarterly SAAR of 15.9 million, up about 4 million units from second quarter’s level. The company also cited its sales recovering sequentially across each month for the quarter, which we think is from coronavirus recovery and the Labor Day sales boost counting for August sales in 2019 but for September this year. Provided no more COVID-19 mass shutdowns, we expect fourth-quarter sales improvement versus third-quarter. Unemployment remains high but lack of inventory is also a problem.

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Company Profile

Business Description

General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has seven brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company remains the market leader in the U.S. with 17% share in 2019. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.

300 Renaissance Center
Detroit, MI, 48265-3000
T +1 313 667-1500
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2019
Stock Type Cyclical
Employees 164,000