GM Reports Strong Third-Quarter Sales Despite UAW Strike

Despite an ongoing strike by the United Auto Workers (UAW) union against Detroit automakers, General Motors (GM) has reported a significant increase in third-quarter U.S. new vehicle sales. GM’s sales from July through September rose by 21.4% compared to the same period last year, outperforming industry expectations. This growth comes despite the UAW strike, which has had little direct impact on GM’s sales so far.

The UAW strike, which began on September 15, has seen only a fraction of UAW members participating in work stoppages. While the strikes have gradually increased, they have been targeted rather than nationwide, aiming to preserve the union’s funds and prolong the work stoppages. However, if the strikes expand or continue, GM and other companies may face sales and supply chain challenges.

According to Cox Automotive chief economist Jonathan Smoke, the impacts of the strikes may start to show in October, particularly affecting the production of vehicles such as the Chevrolet Colorado and GMC Canyon midsize pickups. Despite this, GM’s sales heading into the fourth quarter remain strong, with a 19% increase compared to the previous year.

GM’s sales growth in the third quarter was supported by the introduction of new electric vehicle models, including the Chevrolet Blazer SUV and Silverado pickup. The company also saw increased production and sales of the Cadillac Lyriq EV and Hummer models. However, GM’s electric vehicle sales still lag behind Tesla’s deliveries.

Additionally, GM benefited from the growth of newer, entry-level models like the Chevrolet Trax and Buick Envista, which are imported from plants in South Korea. Overall, GM’s sales performance in the third quarter demonstrates resilience despite the ongoing UAW strike.

As the strike continues, the potential impact on production and sales remains a concern. However, GM’s strong sales in the third quarter indicate the company’s ability to navigate challenges and maintain growth in the highly competitive automotive industry.