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GM Sales Up 8% For December

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On: Mon, Jan 10, 2011 at 1:38PM | By: Sherry Christiansen


GM Sales Up 8% For December

General Motors has posted an 8% increase in sales for the month of December; the rising numbers account for the 4th consecutive month that the Detroit automaker has seen a rise in profits.

All four of GM’s U.S. brands saw sales increases for the last month of 2010, including Buick which produced a 40% increase, Cadillac posting a 13% hike in sales, and Chevrolet with a 35% increase.

The U.S. automotive industry has seen its first yearly increase since 2005.

The end of the year numbers revealed that GM’s increase was 21% (including commercial and fleet sales) as compared to 2009, with 2.2 million units sold. Retail sales rose just 16% for GM in 2010. GM reports that overall profits are still down as a result of Saturn, Pontiac, and Hummer which were discontinued.

GM posted sales of 567,458 crossovers last year which was higher than any other brand.

According to automotive news.com: “total sales probably ran at an annual rate of 12.3 million vehicles last month, based on the average of eight analysts' estimates compiled by Bloomberg. In November and October, sales hit the same pace.”’

“’Consumers are now becoming more comfortable buying cars in an uncertain economic environment, which is a major change in buying patterns compared to a year ago,” said Jesse Toprak, vice president of industry trends at TrueCar.com. “We saw more of the same in terms of consumers' eagerness to come back into the marketplace in December.”

Analysts predict that December sales below 16.8 million in combination with an unemployment rate above 9% will negatively affect the 2011 industrial growth rate.

GM projected a 4.3% increase in December sales, the average of four estimates. In November, the automaker sold $23.1 billion of common and preferred stock in its post-bankruptcy IPO.

“I don't think the full potential for General Motors is really appreciated by investors yet,” said Dan Veru, co-chief investment officer at Palisade Capital Management LLC in Fort Lee, N.J. “The company is without vestiges of the old GM, the product line has improved dramatically, and it's an intriguing emerging-markets play with exposure in China.”




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