GM keeps US sales crown for 2023 despite UAW strike, EV production issues
Jamie L. LaReau, Detroit Free Press
Updated 7 min read
A modest fourth-quarter sales gain helped General Motors log a 14% increase in 2023 over a year prior, selling 2.6 million new vehicles in the United States. GM topped its closest rival, Toyota Motor North America, which sold 2.3 million new cars.
The gain for GM came despite difficulties making battery cell modules for the automaker's newest electric vehicles, hampering production and sales of the EVs. For the year, GM sold 13,938 of the new EVs it builds off its Ultium propulsion system, which includes electric delivery trucks made for GM's BrightDrop service. Its biggest selling EV remained the Chevrolet Bolt and Bolt EUV, built on existing architecture, at 62,045 for the year, a 63% increase compared with 2022.
Unsold 2023 Silverado pickup trucks sit in a long row at a Chevrolet dealership on June 18, 2023, in Englewood, Colo.
GM also faced a 46-day United Auto Workers strike against some key GM plants in the third and fourth quarters. Still, once again, pickups and new SUVs drove sales, along with a 20% increase in commercial sales to fleets for 2023.
“GM has tremendous momentum," said Marissa West, GM's president of North America, in a statement.
West noted GM grew its total market share 0.3 percentage points to 16.3% in 2023. West said GM did so by maintaining strong pricing and low incentives.
"We led the industry in trucks and had great success with our affordable SUVs like the Chevrolet Trax and Buick Envista, some of today’s hottest-selling vehicles," West said. "In 2024, we expect industry sales to remain strong and we’re excited about the opportunities ahead as we expand customer choice with new vehicles like the Chevrolet Equinox EV and Cadillac Escalade IQ.”
In the quarter, GM sold 625,176 new vehicles compared with 623,261 sold in the year-ago quarter. GM ended the year with 456,686 total vehicles in inventory which it said is "on target" with GM's production goal.
For the full year, GM sold 2,594,698 new vehicles compared with 2,274,088 new cars sold in 2022.
Cox Automotive's Senior Economist Charles Chesbrough said GM's fourth-quarter results were "just a little better than last year, however the UAW strike clearly disrupted sales. October and November sales were much lower than previous months, but December’s results suggest a return to pre-strike levels."
For the year, Chesbrough said GM was "strong."
"Sales for the company were up slightly more than the national average, and all brands showed positive growth over last year," Chesbrough told the Free Press. "However, margins are likely under greater pressure as small SUVs were the hot sellers for GM, with Chevy Trax and Trailblazer leading the way. Of the 320,000 gain in company sales over 2022, 133,000 are from these two, lower-margin vehicles."
The impact of the UAW strike
The UAW went on strike Sept. 15 and reached a tentative contract with GM on Oct. 30. Union members across GM ratified the deal in November.
During the so-called Stand Up Strike, the union shut down all of GM's parts distribution centers, Wentzville Assembly in Missouri, which makes midsize pickups and cargo vans, Lansing Delta Township Assembly which makes midsize SUVs, the critical Arlington Assembly plant in Texas, where GM makes its full-size highly profitable SUVs, and Spring Hill Assembly in Tennessee, which makes the Cadillac Lyriq EV and Cadillac XT5 and Cadillac XT6 SUVs.
Despite that, GM said its Buick sales rose 57% to 42,162 in the fourth quarter, carried by Encore GX and the Enclave SUVs. GM sold 13,755 Encore GX vehicles in the fourth quarter, a 52% gain from the year-ago quarter. It sold 10,929 Enclaves, up 42%. For the full year, Buick sales rose 62% to 167,030.
The strike may have had an impact on Chevrolet where the Colorado midsize pickup saw a 40% decline in sales to 12,396 pickups sold in the quarter. The GMC Canyon sales plummeted 52% to 3,107 in the quarter. Both pickups are built at Wentzville Assembly, which was idled during the strike for the full 46 days.
How are EV sales?
In the quarter, GM reported selling 75,883 EVs, and that includes 497 of the BrightDrop delivery vans. It's a 93% increase over the year-ago period, led mostly by sales of the long-running Chevrolet Bolt and Bolt EUV.
For the year, GM delivered 482 of the new 2023 Chevrolet Blazer EVs, built in Mexico, and 461 of the 2023 Silverado EVs, made at Factory Zero in Detroit and Hamtramck.
Part of GM’s $2 billion investment saw Spring Hill Assembly retooled with new machines, conveyors, controls and tooling for 2023 Cadillac Lyriq production, which started March 21, 2022.
GM is still struggling to roll out the Cadillac Lyriq EV despite launching it in July 2022. In the quarter, GM delivered 3,820, up from the 86 it delivered in the year-ago quarter, but for the full year, GM delivered 9,154 Lyriqs, up from 122 in 2022.
Earlier in the year, GM's-then President of North America Rory Harvey said GM had supply chain problems and trouble making enough batteries. He said the problems were being resolved and production would excel in the second half.
One of GM's biggest successes in 2023 was the all-new Chevrolet Trax subcompact SUV. GM launched it in April with all five trim levels starting under $25,000. Sales took off and it ended the year having sold 109,382 compared with 26,597 of the previous older design in 2022.
For the year, GM sold 555,148 total Chevrolet Silverado full-size light duty and heavy-duty pickups, up 5% from 2022. Total sales of the GMC Sierra full-size pickups rose 22% to 295,737 for the year.
The Chevrolet Trailblazer midsize SUV had a good year with sales of 111,014, an 82% increase.
For 2024, GM said it will be increasing production of the Cadillac Lyriq, Chevrolet Silverado EV, GMC Hummer EV and Chevrolet Blazer EV. It will be launching this year the Chevrolet Equinox EV, Cadillac Escalade IQ, the uber-expensive hand-built Cadillac Celestiq and the entry-level Cadillac Optiq.
GM will bring to market new or redesigned gasoline-powered models of the GMC Acadia, the Chevrolet Equinox, Buick Envision, Chevrolet Traverse, Cadillac CT5, GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban.
GM's rank against other carmakers
GM retains the sales crown in the United States, which typically comes down to a horse race between it and Toyota Motor North America, with other automakers trailing.
Toyota Motor North America, reported year-end 2023 U.S. sales of 2,248,477 vehicles, an increase of 6.6%. For the quarter, Toyota reported sales of 619,661 vehicles, an increase of 15.4%.
Sales of Toyota's electrified vehicles, which include hybrids, for 2023 was 657,327. That represented 29.2% of total sales volume, the company said.
Stellantis, which owns the Jeep, Ram, Chrysler, Dodge, Fiat and Alfa Romeo brands, was expected to report results later Wednesday. Ford Motor Co. will report its results Thursday.
