General Motors (GM) announced a narrow gain in US vehicle sales for the fourth quarter, despite the impact of a strike at its plants in September and October. The strike, which lasted from September 15 to October 30, affected certain assembly plants, leading to a 27.5% decline in sales for the twelve models produced at these facilities. However, strong demand for vehicles from other plants resulted in an overall increase of 14% in sales compared to the same period the previous year.
Sales of GM's full-size pickups, the Chevy Silverado and GMC Sierra, experienced a modest 3% increase in the quarter, down from the 14% growth rate reported in the first nine months of the year. While the strike's effect on the supply chain and production was not explicitly mentioned in GM's sales statement, the figures reflected the varied impact on different models and production facilities.
Marissa West, President of GM's North America unit, expressed optimism about the industry's sales outlook in 2024, anticipating continued strength. The year 2023 saw a 19% increase in GM sales through the first three quarters compared to the same period in 2022. Despite the essentially flat sales in the fourth quarter, GM concluded the year with a 14% overall sales increase.
Analysts noted that the automotive industry faced challenges in 2022 due to a parts shortage, particularly computer chips, affecting new car production. While supplies of these parts improved by the fourth quarter of 2022, making comparisons more complex, December showed a strong finish, and dealers engaged in end-of-month negotiations.
Stellantis and Ford, the other two automakers struck by the United Auto Workers union during the targeted action, are expected to report results later, providing a comprehensive view of the strike's impact on the industry.
