General Motors ( GM Quick Quote GM - Free Report) recently released figures for vehicles sold in the United States during the fourth quarter of 2021 as well as the whole year. The U.S.-based automaker reported sales of 440,745 vehicles in the United States in the quarter under discussion, slumping 43% from the year-ago period’s reading. This underperformance stemmed from record low inventories during the quarter, caused by the global crunch in semiconductor supply. The automaker closed the quarter with 199,662 units in inventory. During the December quarter, sales plummeted across all four General Motors brands, namely Buick, Chevrolet, GMC and Cadillac. The mass-market brand Buick deliveries plunged 34.8% year over year due to declining demand for the Encore GX, Encore and Enclave, sales of which tanked 40.7%, 87% and 31%, respectively. Nonetheless, Buick Envision sales increased 9.6% to 9,286 units. Chevrolet sales fell 44.7% year over year to 288,647 units. Sales across most Chevrolet vehicles tumbled during the quarter, except for the Chevrolet Tahoe, Chevrolet Suburban and Chevrolet Silverado MD sales, which improved 8%, 3% and 5%, respectively. GMC deliveries plunged 37.7% because of declining sales of all its vehicles except the GMC Savana sales, which increased 37% year over year. The luxury brand Cadillac’s fourth-quarter sales dropped47.8% to 22,385 units, with sales down across all its vehicles except the Cadillac Escalade, sales of which inched up 2% to 9,664 units. Sales of GM’s full-size SUVs (including the Cadillac Escalade and Escalade ESV, GMC Yukon and Yukon XL, and the Chevrolet Tahoe and Suburban), considered the biggest catalyst for the automaker’s profits, to which General Motors has been prioritizing the supply of microchips, came in at 79,076 units during the quarter. 2021 Sales Highlights
General Motors delivered 2.2 million vehicles in 2021 in the United Sates, declining 13% year over year due to the global dearth in semiconductor supply.
Chevrolet Silverado and GMC Sierra sales solidified General Motors’ position to mark its eighth consecutive year of combined full-size and midsize pickup sales dominance, the second consecutive year as the full-size pickup sales leader and its 21st successive year as the market superior in terms of full-size SUVs. Combined sales of Chevrolet Silverado, and GMC Sierra LD and HD were reported as 768,689 units. Additionally, Cadillac Escalade deliveries jumped 65% from the 2020 level, marking the best sales figure since 2007. Chevrolet Silverado Medium Duty sales rose 39% year over year, while Chevrolet Corvette sales soared 53% in 2021, recording its best annual sales performance since 2015.
Further, a fleet of new and revamped models fueled Buick sales to maximum since 2019.
Like most other automakers, General Motors was hobbled by the global semiconductor chip crunch, used in various car parts, during 2021. This forced the automaker to temporarily halt production across several plants in North America. Nonetheless, this year, GM plans to take advantage of the expected improvement in semiconductor supply to help drive its U.S. total light industry sales from around 15 million in 2021 to around 16 million in 2022. The auto bigwig also plans to commence its EV leadership in North America with the rollouts of GMC HUMMER EV, Cadillac LYRIQ and the debut of the Chevrolet Silverado EV and GMC Sierra EV. Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other top-ranked stocks in the auto space that investors can consider include Fox Factory Holdings ( FOXF Quick Quote FOXF - Free Report) , Genuine Parts ( GPC Quick Quote GPC - Free Report) and LKQ Corporation ( LKQ Quick Quote LKQ - Free Report) , all carrying a Zacks Rank of 2, currently. Fox Factory has an expected earnings growth rate of 16.67% for the fourth quarter of 2021. The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been revised two cents upward in the past 90 days. Fox Factory’s earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 15.85%, on average. FOXF has surged 37% in the past year. Genuine Parts has an expected earnings growth rate of 4.61% for the fourth quarter of 2021. The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been revised 7 cents upward in the past 90 days. Genuine Parts’ earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 15.97%, on average. GPC has surged 35.2% in the past year. LKQ Corp has an expected earnings growth rate of 11.59% for fourth-quarter 2021. The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been revised a penny upward in the past 90 days. LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 34.37%, on average. LKQ has rallied 55.6% in the past year.