Fact: General Motors posted a 1.24 percent drop in sales to 272,423 units in August of 2014 in the U.S.
Fact: only GMC sales were up, while Buick, Chevrolet, and Cadillac were down.
And here’s another, less-publicized fact: GM’s incentive spending as a percentage of average transaction prices (ATPs) was 10.4 percent in August. That is the lowest of all domestic automakers by a significant margin, according to J.D. Power PIN estimates. In fact, GM’s spending was down a full percentage point compared to both August 2013 and July 2014.
Translation: as other automakers (like the Chrysler group) post double-digit sales gains while pretty much giving away their vehicles, The General is being significantly more constrained with its incentive spending, which should theoretically result in higher profitability, while signifying that people are buying GM’s product for the product, rather than the price. And that’s a good thing, especially when compared to the way Old GM did business just as recently as 2008.