Reporting significantly lower sales in June and July, General Motors (NYSE:$GM) was facing troubles. However, the company bounced back by reporting a 7.5% year-over-year increase in its U.S. sales in August.
Specifically, GM reported a retail deliveries increase of 4%, and another speculated one-half point increase in the retail market share this month. It is particularly notable that despite Hurricane Harvey’s impact in Texas, GM’s sales remained consistent and positive.
Who’s the hero? Well, the success of GM’s crossovers was a key driving factor in August. Sales of its Cadillac XT5 crossover sales increased by 28%, the second-best month for this model since its launch. Similarly, the two Buick models — the Encore and the Envision — also saw sales increase by 31%, and 78%.
What is driving this new demand for crossovers? While sales of sedans are slowing down, consumers are favoring crossovers that provide the comfort of an SUV, but wears the fuel economy of a car. In other words, a crossover is the “best of both worlds.”
Specifically, GM’s retail crossover share in 2Q17 was up by 24% year over year, rendering this its best quarter in crossover sales. GM looks to launch four more crossovers in the second half of 2017 and it is speculated that this segment will remain the key profit driver for the company through the next year.
Featured Image: twitter