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Tracking GM Global Vehicle Deliveries and Sales By Segment

A 1958 GM Oldsmobile vehicle. Flickr Image.

This article is tracking the vehicle delivery of General Motors (GM) from quarter to quarter. The data are obtained from GM quarterly financial statement under the “Vehicle Sales” section.

Take note that GM presented two types of vehicle sales data in its quarterly statements, namely “wholesale vehicle sales” and “total vehicle sales”.

What is presented in this article is the “wholesale vehicle sales” data. The major difference between the two is that the wholesale vehicle sales data correlates to GM revenue recognized from the sales of vehicles whereas the total vehicles sales data does not correlate to the company revenue recognized.

The following paragraph shows the explanation taken from the 1Q 2019 10-Q that differentiates between wholesale and total vehicle sales data.

Wholesale Vehicle Sales Explanation

“We present both wholesale and total vehicle sales data to assist in the analysis of our revenue and our market share. Wholesale vehicle sales data consists of sales to GM’s dealers and distributors as well as sales to the U.S. Government, and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue.”

Total Vehicle Sales Explanation

“Total vehicle sales data represents:

(1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors);
(2) fleet sales, such as sales to large and small businesses, governments, and daily rental car companies;
(3) vehicles used by dealers in their businesses, including courtesy transportation vehicles.

Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on our percentage ownership interest in the joint venture.”

“While total vehicle sales data does not correlate directly to the revenue we recognize during a particular period, we believe it is indicative of the underlying demand for our vehicles. Total vehicle sales data represents management’s good faith estimate based on sales reported by GM’s dealers, distributors, and joint ventures, commercially available data sources such as registration and insurance data, and internal estimates and forecasts when other data is not available.”

GM uses the total vehicle sales data extensively in most of the company earnings release reports. For example, the quarterly GM Global Sales Chart is one of earnings releases that uses the total vehicle sales data. As such, what you see in most of these releases are total vehicle sales data which do not correlates to revenue recognition.

What I am showing you here is the data that correlates to the company revenue. As a result, the vehicle sales data shown in the following charts are the data from wholesale vehicle sales data which correlates closely to the company revenue.

Chart of GM Worldwide Vehicle Deliveries

GM worldwide vehicle deliveries

GM worldwide vehicle deliveries

The chart above shows the GM worldwide vehicle sales data for the past 5 years.

The trend of the chart is showing a declining trend for worldwide vehicle deliveries. For example, worldwide vehicle deliveries in 2014 was around 1.5 million units and had increased slightly to 1.6 million units in 2016 before starting to decline in 2017.

In 2017, worldwide vehicle deliveries started to slow down significantly after the sale of GM Europe subsidiary and reached the lowest point in 2019 at only 1.1 million units.

Chart of GM Worldwide Vehicle Deliveries Sequential Growth Rate

GM vehicle deliveries quarter over quarter growth

GM vehicle deliveries quarter over quarter growth

The chart above shows the quarterly growth rate of worldwide vehicle sales for the past 5 years.

The company is almost registering the same numbers of positive and negative growth rate in the chart above. As a result, the average sequential growth will be close to neutral and from a spreadsheet calculation, the average growth rate for the past 5 years did show that the figure is -1% which is close to 0%.

Chart of GM Worldwide Vehicle Deliveries Year Over Year Growth Rate

GM vehicle deliveries year over year growth

GM vehicle deliveries year over year growth

The chart above shows the year over year growth rate of worldwide vehicle sales for the past 5 years.

Year over year growth was the worst during 2017. Throughout the period from 2017 to 2018, all quarters were having negative yoy growth rate, with 2017 having the lowest figure at -26%.

Year over year growth rate in 2018 has started to improve but still showing modest decline compare to 2017. In average, the year over year growth rate for the past 5 years was -6%.

Chart of GM Worldwide Vehicle Deliveries by Segment

GM worldwide vehicle deliveries by segment

GM worldwide vehicle deliveries by segment

The chart above shows the vehicle deliveries breakdown into several business segments such as the GM North America (GMNA), GM International (GMI) and GM Europe (GME).

From the chart above, GMNA is the largest revenue contributor, delivering about 55% of vehicle sales to the company. At the same period, GMI and GME both contributes about 25% and 20% respectively of vehicle deliveries to GM.

Take note that GM has completed the sale of GME subsidiary in 2017 and therefore the vehicle sales data has ceased to exist by the end of 2017.

From the first chart, we have seen that worldwide vehicle sales had declined both sequentially and year over year but vehicle deliveries for GMNA has registered modest gain for the past 5 years.

From a spreadsheet calculation which I did not show here, the average quarterly growth rate for GMNA vehicle deliveries was 1% and the year over year growth rate was 2% from 2014 to 2019.

In contrast, GM International has registered an average qoq growth rate of -1% and yoy growth rate of -6% for the past 5 years.

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References:

1. Financial figures in all charts were obtained from General Motors Investor Relation.

2. Featured image was obtained from Cam Miller and GM Europe.

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