General Motors recently announced its Q4 2021 U.S. Sales Report. In the report, GM says that dealer inventories increased compared to dealer inventory levels in Q3 2021, up to 199,662 units by the end of Q4, as compared to 128,757 units at the end of Q3.
The increase in General Motors dealer inventory is attributed to improvements in supplies of critical microchip components. The ongoing global microchip shortage has had a profound impact on GM’s production capabilities and feature availability, but the automaker has indicated that chip supply levels are increasing.
“The key constraint for sales continues to be reduced inventory levels as a result of the semiconductor shortage. Those inventory levels are beginning to recover against a backdrop of strong fundamental demand conditions, with ample job openings, high household savings and low interest rates,” said GM’s chief economist, Elaine Buckberg.
Despite the low inventory, a number of GM vehicle lines increased in sales through Q4 of 2021, including the Chevy Tahoe, up 8 percent, the Chevy Suburban, up 3 percent, the Buick Envision, up 10 percent, the Cadillac Escalade, up 2 percent, and the Chevy Silverado MD truck, up 5 percent. GM’s full-size SUVs continued to show strong sales performance, marking the 21st consecutive year of GM as the full-size SUV market leader. Combined, sales of the GMC Yukon, Chevy Tahoe, and Chevy Suburban were up 26 percent for the year, while Cadillac Escalade sales were up 65 percent compared to 2020.
Total GM U.S. sales were down for the quarter at 440,745 units, a decrease of 43 percent compared to Q4 of 2020, the latter of which was GM’s best quarter for retail sales since 2007. Total vehicle deliveries in 2021 came in at 2.2 million units.
Following the release of the General Motors Q4 2021 U.S. Sales Report, GM stock value rose to reach a new all-time high. General Motors expects continued economic growth and improvement in microchip availability, leading to an increase in U.S. auto sales through the 2022 calendar year.