GM September U.S. Sales Up 19%; Outlines Strategic Plans

(RTTNews) - Automakers General Motors Co (GM) and Chrysler, on Wednesday reported a double-digit growth in September U.S. sales, led by demand for pickup trucks and sports utilities, while Ford saw a 3 percent drop in volumes. This comes amid some strong economic conditions, low interest rates and consumer penchant for newer vehicles.

GM also outlined strategic plans to achieve 9 to 10 percent margins on an EBIT-adjusted basis by early next decade, signaling efforts by CEO Mary Barra to boost growth at a time when the auto maker is grappling with vehicle recalls that has dented its image and led to congressional hearings.

GM said that in 2015, about 27 percent of its global sales volume is expected to come from new or refreshed products; that figure is expected to rise to 38 percent in 2016 and 2017, and 47 percent in 2019.

GM is establishing its flagship Cadillac brand as a separate business unit headquartered in New York City to pursue growth opportunities in the luxury market. Cadillac expects to introduce four new vehicles in North America in 2015.

In addition, Cadillac plans to introduce nine new models in the next five years in China, which is expected to become the world's largest luxury car market later this decade.

GM's joint ventures in China are planning to invest $14 billion from 2014 through 2018 to open five new vehicle- making plants, and launch 60 new or refreshed vehicles.

GM also reaffirmed the company's previously announced near-term financial targets. In North America, it expects to achieve EBIT-adjusted margins of 10 percent in 2016, and in Europe, it expects to return to profitability in 2016.

In China, the company expects its joint ventures will maintain net income margins in the 9 to 10 percent range. In South America, the company's core operations continue to improve as a result of recent product launches and material and logistics optimization.

GM intends to return excess cash flow to stockholders primarily through strong and growing dividends based on sustained improvements in the company's underlying financial performance.

Meanwhile, GM said its U.S. sales in September rose 19.4 percent to 223,437 units from 187,195 units in the prior year. There were 24 selling days in September 2014, compared with 23 selling days last year.

Retail deliveries, which are sales to individual consumers, were up 17 percent. Fleet deliveries were up 30 percent.

Growth was seen at its Chevrolet, GMC Sierra and Buick brands, while Cadillac sales were flat.

Meanwhile, Chrysler Group reported a 19 percent rise in U.S. sales in September, with sales of Jeep brand surging 47 percent. Grand Cherokee sales dropped 14 percent, while Ram pickup truck sales rose 30 percent.

Ford Motor Co (F) said its U.S. sales in September slid 2.7 percent from a year ago to 180,175 vehicles. Sales of Ford brand vehicles decreased 3.2 percent, while sales of Lincoln brand vehicles grew 12.5 percent.

Ford's total passenger car sales declined 6.9 percent, and truck sales decreased 2.5 percent Meanwhile, utility vehicle sales improved 1.5 percent.

Among others, Toyota reported U.S. sales of 167,279 in September, down 1.7 percent. Honda said its U.S. sales climbed 12 percent to 118,223 units, while Nissan's sales rose 19 percent to 102,955 vehicles.