General Motors Company (NYSE: GM) says its sales in the United States were up significantly in the third quarter. Shares of the automaker are still down 3.0% at writing.
General Motors blew past sales estimates in Q3
Experts had forecast the industry at large to see up to a 16% annualised growth in sales in the third quarter. But GM blew past those estimates today reporting its U.S. sales up a whopping 21% instead.
General Motors reported strong performance for its EV segment as well on Tuesday. Sales of electric vehicles in the U.S. were up 28% “sequentially” in the third quarter, as per the press release.
What these numbers suggest is that the UAW strike which started on September 15th hardly had an impact on GM sales in Q3. Last week, the United Auto Workers extended its work stoppage to another facility of General Motors in Michigan.
UAW strike may not remain muted moving forward
Even though targeted walkouts tend not to affect a company as quickly as national strikes, if continued, they will still start to hurt GM sales in October.
Prolonged strike is expected to hit the likes of GMC Canyon and Chevrolet Colorado in particular, as per Jonathan Smoke – Chief Economist at Cox Automotive.
Should the strike further expand, the more vulnerable products are the large SUVs from Chevrolet and Cadillac, which have tighter inventory levels compared to their domestic rivals.
General Motors Company will report its full financial results for the third quarter in the final week of October. Consensus is for it to earn $1.88 a share versus $2.25 per share a year ago.
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