GM (NYSE:GM) Sales Rate Below The Europe Car Sales
European Union had been going through a deep recession for quite some time and its gradual materialization from it resulted in the ongoing growth of car sales in the region. However, General Motors Co. (NYSE:GM) was one company amid all other prominent car companies that could not manage to boost its sales and continued having sales issues which were initiated by years of losses.
As per the European Automobile Manufacturers’ Association (ACEA), the registrations for car sales in EU increased more than 6.5% in October, from a previous year to 1,072,837 sold units which pronounced the 14th successive month of growth. However, the reformation remains irregular because of the fact that some economies continue to strive for economic development.
Significant growth was seen in majority of the main markets. Spain saw more than 26.1% growth, UK saw growth of more than 14.2%, Italy saw a growth of plus 9.2%, and Germany saw a growth of more than 3.7%. The combined growth in sales across the region saw a growth of more than 6.5%. While most regions saw a growth in sales, France remained an exception. France reported a decrease of -3.8% during the same month last year.
During the month of October, the region’s biggest car company Volkswagen saw a 6.9% to 276,816 increases in its sales. The company’s market share increased from last year’s 25.7% to 25.8%. In comparison, General Motors (NYSE:GM) is the most popular car company in U.S and has 18% market shares in the country’s auto industry.
PSA Group, which is the owner of Peugeot and is the 2nd biggest car company in the region showed 11% to 118,432 increase in its October sales. The company’s market chares declined from last year’s 11.6% to 11.1%.
The 3rd biggest car company Renault Group showed 10.5% to 107,449 increases in its sales. The company’s market share increased from last year’s 9.6% to 10.0% this October.
To General Motor’s (NYSE:GM) dismay, the company’s main competition Ford Motor Co. (BYSE: F) came out with reasonable results. The company’s sales went up 4.3% to 76,312. However, the company’s market share declined from last year’s 7.3% to 7.1% this year.
General Motors (NYSE:GM) sales declined 5.1% to 69,421. The company’s market shares slipped from 7.3% to 6.5%. To show how difficult things have become for General Motors (NYSE:GM), the creator of luxury car BMW managed to sell as many cars as the U.S company did. The company established unit sales of 69,421 with an increase of 9.4%.
Despite the disappointing numbers, General Motors (NYSE:GM) remain to be optimistic about Europe. As per the Wall Street Journal, Adam Opel AG which is General Motors (NYSE:GM) European unit occur to be on the verge of breaking without even making it to its target date which is set for 2016. Mary Barra, the chief executive of General Motors (NYSE:GM) is likely to face the company’s fallout from a huge recall that is anticipated to snatch $1.3 billion out of General Motor’s (NYSE:GM) profits of the first quarter.