GM’s Q3 Sales Drop 5.5% as Electric Models Collapse and Toyota Closes to Within 136,000
GM's sales fell 5.5% in the third quarter, with its electric models experiencing a dramatic collapse after the $7,500 federal purchase credit ended in the U.S. While Europe maintained its CO2 targets, leading to a 29% electric car share in August and higher petrol prices, GM's electric vehicle sales plummeted.
Specifically, the Equinox EV saw a 92.4% drop to only 1,905 cars, and the Blazer EV and Hummer EV also suffered significant declines. In contrast, Toyota's sales increased 0.6% to 633,223, with electrified models, including hybrids, up 28.5%.
GM's market lead over Toyota is shrinking, with the gap narrowing to approximately 136,000 vehicles year-to-date, compared to a 335,000-vehicle lead last year. Honda, meanwhile, experienced a 9.3% sales increase, driven by record hybrid sales exceeding 106,000 units.
Europe's hybrid and electric vehicle market is outpacing the U.S. due to stricter CO2 targets and policies. The difference in fuel prices, with U.S. average at $4.41 per gallon compared to $8.95 per gallon in the EU, further exacerbates the challenge for GM, which is investing $1 billion in manganese-rich cells for a shrinking market.
GM's cheapest models performed relatively well, with the Chevrolet Trailblazer up 51%, the Buick Envista 18.4%, and the Chevrolet Trax 16.3%. However, the Cadillac brand saw a 25% decline for the year, highlighted by the stark contrast of 1,905 Equinox EV sales.
According to GM's North America president, Duncan Aldred, the business is performing well, but the sales figures tell a different story.