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Heightened availability stokes Chevy Colorado sales
<p><strong>Heightened availability stokes Chevy Colorado sales.</strong></p>

GM Sales Slip in August; Predicts Strong Finish to Year

Several model lines posted notable gains, led by the Chevrolet Colorado and GMC Canyon.

General Motors’ August U.S. sales dip 5.2%, as the automaker continued its pullback on sales to rental-fleet customers and tighter inventories kept a lid on deliveries across the board.

The Detroit automaker sold 256,429 cars and trucks last month, compared with 270,480 in like-2015, according to WardsAuto data.

Several model lines posted notable gains, however, led by the Chevrolet Colorado and GMC Canyon. The midsize pickups posted combined sales of 12,605 units, up 29.9% and 38.8%, respectively, compared with the same period last year. GM says recent production adjustments at its Wentzville, MO, assembly plant increased availability of the hotly sought-after trucks.

Americans’ appetite for large SUVs also continued in August. The Chevy Tahoe sold 8,297 copies, an increase of 0.9%, while the extended-wheelbase Suburban saw 5,737 takers, a jump of 27.5%. Deliveries of the GMC Yukon rose 18.5% to 5,324 and sales of the larger Yukon XL soared 59.9% to 3,478 for their best August since 2007.

Sales of the Cadillac Escalade large luxury SUV also grew, expanding 5.5% on a more modest volume of 1,876 units.

But the story behind GM sales for the eighth month of the year continued to be a focus on the retail channel, or sales to everyday customers vs. rental companies. The automaker says its retail sales so far this year are up 1% to lead all full-line manufacturers in the country, led by its volume Chevy brand with a 2% gain year-to-date.

Rental sales increased 4% in August, but remained 10% of GM’s fleet mix and down sharply from what it would have been two years ago. Overall fleet was 17% of total sales and 19% thus far in 2016.

“Despite tighter dealer inventories, we had a solid retail performance in August led by Chevrolet, which gained retail share in eight different segments,” says Kurt McNeil, vice president-U.S. Sales Operations at GM.

“Our retail strength is reflected in our record ATPs in August, which were up more than $1,600 from last month and nearly $5,800 above the industry average, while our incentive spending was below the industry average and well below our domestic competitors,” McNeil says in a statement.

Strong second-half sales ahead, Mohatarem says.

Weak points for GM in August came from surprising segments. The automaker’s historically stalwart 5-passenger CUVs, the Chevy Equinox and GMC Terrain, combined for 21,277 deliveries, down 39.4% and 35%, respectively. GM cites conservative incentive spending on the trucks in an industry segment where discounts are running high, constrained inventories and their product-cycle age relative to competitors.

GM’s bread-and-butter large pickups also wilted in August. Sales of the Chevy Silverado slipped 4.7% to 52,408 and deliveries of the GMC Sierra tumbled 17.7% to 17,478. The automaker points again to tight inventories of the pickups and aggressive incentives on rival offerings from Ford and FCA US.

Looking ahead, GM remains bullish about sustained sales strength as concerns mount in some corners of the industry that U.S. sales have plateaued, if not peaked.

“All the economic factors continue to point toward a strong second half of the year and another potential record year for the industry,” GM Chief Economist Mustafa Mohatarem says, reiterating his call at an industry conference last month for “promising” long-term consumer demand on the strength of population growth, low unemployment, accommodating interest rates and continued economic expansion.

“We think the industry is well-positioned for a sustainable high level of customer demand,” he says.

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