GM Trucks and SUVs Help Boost Company’s 3Q Profits
United States, China Bolster Strong Financial Showing
General Motors (GM) released its third-quarter (3Q) 2014 financial information today, boasting an overall net income of $1.4 billion, compared to $0.7 billion for the same time period in 2013. The gains can be attributed to higher transaction prices of GM’s newly redesigned pickups and SUVs, which saw strong sales in North America.
The 2015 Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and Cadillac Escalade and Escalade ESV have sold at an average transaction price $4,000 higher than their 2014 counterparts, and sales of the fullsize SUVs are up compared to last year as well. We’ve driven them, and they’re vast improvements over the SUVs they replace, so it’s not surprising to see them selling well in truck-happy America.
Additionally, the brand’s other new-for-2015 releases helped boost confidence in the company. The Chevrolet Colorado/GMC Canyon twins went on sale during the quarter, and international debuts like the Chinese-market Buick Envision crossover helped bolster sales abroad. China proved to be a valuable market for GM, where it sold a record number of vehicles in a quarter.
In markets where trucks are less popular, GM suffered. The company’s operations in Europe, Russia, and South America all posted losses, due in part to supplier issues in Russia and economic problems and slow sales in South America.
Source: General Motors