General Motors recently held its first-quarter 2020 earnings call with analysts, posting $300 million in income on $32.7 billion in revenue. Compared to Q1 of 2019, the results show an 86.7 percent decline in income and a 6.2 percent decline in revenue, outpacing all expectations for the quarter while surprising analysts and Wall Street. During the call, GM CEO Mary Barra indicated that incentives on the Chevrolet Silverado and GMC Sierra pickup trucks were kept low throughout April.
“Overall retail and fleet volumes were down in April, but we continue to see resilience in truck deliveries,” Barra told analysts during the call. “In April, GM’s incentives for light-duty pickup trucks were below the segment average.”
Later in the call, Brian Johnson, an analyst at Barclays Capital, asked about incentives for the GM pickups, including the Chevrolet Silverado and GMC Sierra, saying that the perception was that GM was offering a breadth of incentives on the models.
“Well, I would say you should look at ATP,” Barra answered. “GM Sierra had record-high ATPs at the levels of incentives that we had. And Brian, you’ve seen that our incentives ebb and flow based on what market tactics our competitors have as well. And just in April alone, which was just this last month, our incentives were lower than that of competition. So ATP is higher, discipline continues and the April incentives are another proof point that this is something that you’ll see up and down, but we’ve committed to being disciplined.”
As we reported in April, Chevrolet Silverado sales jumped 27 percent in Q1 of 2020, with 144,734 deliveries in the U.S., overtaking Ram’s 128,805 deliveries during the same time period. Chevrolet Silverado sales accounted for 27 percent segment share during the quarter.
Full-Size Pickup Truck Sales - Q1 2020 - USA
|MODEL||Q1 20 / Q1 19||Q1 20||Q1 19||Q1 20 SHARE||Q1 19 SHARE|
|RAM RAM PICKUP||+7.31%||128,805||120,026||24%||23%|