Auto Sales: General Motors Takes Q3 Crown, But GM Stock Drops To New Low

• APARNA NARAYANAN
• 02:15 PM ET 10/04/2023

Auto sales in the U.S. grew for Ford Motor (F), General Motors (GM), Toyota Motor (TM) and Honda (HMC) in the third quarter, fueled by rising inventories and fleet demand. But GM stock made a new low on Wednesday.

Bucking the trend, Chrysler parent Stellantis (STLA) saw declining new vehicle sales.

As expected, GM took the Q3 sales crown, while the autoworkers’ strike extends into its third full week. Both GM and Ford reported sales momentum for electric vehicles, after challenges in the prior quarter.

Auto Stock Ratings

Company	Symbol	Comp Rating	EPS Rating	RS Rating	SMR Rating	A/D Rating
Stellantis	(STLA)	97	95	94	A	C+
Tesla	(TSLA)	96	93	94	A	C
Toyota Motor	(TM)	93	79	92	C	B-
Ford Motor	(F)	84	95	41	B	B-
General Motors	(GM)	73	84	28	A	C-

Here is how automakers performed in Q3. The estimates from Cox Auto show sales volume for the quarter, as well as sales growth or decline vs. a year ago.

U.S. Auto Sales: General Motors

Q3 sales estimate: 658,433 vehicles, up 19.3% vs. Q3 2022.

Results: GM sold 674,336 vehicles, up 21% year over year. Year to date, GM sales are up 19%.

For Q3, the auto giant reported growth across all its car brands. Robust sales of traditional, gas-powered pickup trucks and new SUVs continued to drive gains, along with fleet sales.

GM sold 20,092 EVs in the third quarter, mostly older Bolts.

However, sales of newer-gen EVs also surged, albeit from low levels, as production headwinds eased. Lyriq EV sales more than doubled vs. Q2 to 3,018. Hummer EV sales rocketed to 1,167 from 47 in Q2.

GM also began initial sales of the Silverado electric truck.

Both GM and Ford are trying to ramp up EV production and sales after supply issues. In the second quarter, GM’s EV sales disappointed many investors.

Globally, automakers are shifting to electric vehicles, in the wake of Tesla’s success.

Shares of General Motors shed 2.9% Tuesday and a further 1.9% on the stock market today. GM stock hit a new 52-week low of 30.74 on Wednesday. It remains well below the 50-day moving average.

This week, GM and Ford boosted layoff in response to an expanded workers’ strike. According to a Bloomberg report Wednesday, General Motors said that the strike has already cost $200 million in the first two weeks, prompting the company to secure credit as it braces for more losses.

On Monday, Tesla (TSLA) reported disappointing global EV sales for the third quarter. EV startup Rivian (RIVN) reported better-than-expected Q3 deliveries.

Toyota Motor

Q3 sales estimate: 572,764 vehicles, up 8.9% vs. Q3 2022.

Results: Toyota sold 590,296 vehicles in Q3, up 12.2%.

A strong September finished the quarter. Toyota sold 203,904 vehicles for the month, a 13.9% increase from a year ago. “Electrified” vehicles made up nearly a third of the September total, Toyota said. The term includes battery electric vehicles, as well as fuel cell, hybrid and plug-in hybrid vehicles.

Toyota stock slid 3.1% Tuesday and a further 3% Wednesday, sliding below the 50-day moving average.

Ford Motor

Q3 sales estimate: 493,373 vehicles, up 6.9% vs. Q3 2022.

Results: Fold sold 500,504 vehicles, up 7.7% year over year. Year to date, Ford sales are up 9%.

In Q3, Ford truck sales grew 15% to 275,554 units. Ford SUV sales fell 0.3% to 194,723 units.

The automaker touted its “best ever sales” electric vehicles, including 20,962 battery-electric vehicles (BEVs) and 34,861 hybrid-electric vehicles.

Ford’s BEV sales jumped 15% year over year and were also up quarter over quarter. The gains were driven by the E-Transit van and the Mustang Mach-E SUV, for which Ford reported the highest sales since its debut in 2021. However, sales of the F-150 Lightning, the all-electric version of Ford’s top-selling truck, fell last quarter.

Sales of Ford hybrid-electric vehicles surged 41% year over year and were up slightly quarter over quarter. The new Maverick hybrid truck fueled gains, selling 23,931 units, an 83% increase year on year.

Ford stock shed 1.3% Wednesday, falling further below the 50-day line.

The auto giant said Tuesday it had made a new contract offer to resolve the UAW strike, but said a dispute over battery plants remains.

Stellantis

Q3 sales estimate: 384,371 vehicles, down 0.3% vs. Q3 2022.

Results: Stellantis sold 380,563 vehicles, down 1% from a year ago.

Shares of Stellantis stock gave up nearly 1% Wednesday.

Honda Motor

Q3 sales estimate: 331,608 vehicles, up 49.3% vs. Q3 2022.

Results: Honda sold 339,143 vehicles in Q3, up 52.7%. Like Toyota, Honda also signaled sales momentum heading into the close of 2023. Electric and hybrid-electric vehicles account for almost a quarter of its sales.

Honda stock gave up 3.5%, uncercutting the 50-day line.

U.S. Auto Sales Outlook

The annualized pace of September sales should reach 15.5 million, up from August’s 15 million rate, Cox Automotive analysts said. Citing strong Q3 sales momentum, the firm also raised its full-year forecast.

For 2023, Cox Auto now expects 15.3 million-15.4 million new vehicles to be sold in the U.S. market.

That is up from its forecast of 15 million at the end of June.

“Year-over-year sales gains have been surprising indeed,” said Cox analyst Charlie Chesbrough.

Consumers face high interest rates and ongoing inflation, which have put new cars out of reach for many.

However, pent-up demand has been fueling the vehicle market this year. Consumers and, especially, fleet customers are buying as the supply of new vehicles improves.

The UAW strike over a new labor contract has had little impact so far, analysts said. But a protracted strike could reverse gains the industry has made on inventory this year, they warned.

https://www.investors.com/news/auto-sales-q3-2023-gm-ford-gains/