General Motors’ (GM) third-quarter sales declined 2.2% from a year ago amid a widening slowdown in the automotive industry.
The Detroit automaker reported that its sales in the U.S. during Q3 fell to 659,601 units. A year earlier, the company’s sales increased 21% as demand surged coming out of the pandemic.
Management at General Motors said that financially stressed consumers are buying fewer new vehicles and trading down to cheaper models.
General Motors’ bestselling vehicle during Q3 was its Trax compact SUV, which saw sales increase 60% from the same period of 2023.
Separately, market research firm J.D. Power said that overall new vehicle sales in the U.S. rose a tepid 0.2% to 3.88 million units in this year’s third quarter.
In a news release, J.D. Power said Americans are struggling with higher costs and moving away from purchasing new vehicles.
The stock of General Motors has gained 25% so far this year and is trading at $44.88 U.S. per share.
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