GM third quarter sales jump 21% as UAW strike slowly expands

DETROIT — The ongoing UAW strike against Detroit automakers has few direct consequences General Motors’ U.S. new car sales in the third quarter.

The Detroit automaker reported on Tuesday that sales rose 21.4% from July to September, while sales remained sluggish in the third quarter of 2022, when the industry is still recovering from supply chain issues.

GM’s growth greatly exceeded auto analysts’ expectations for the entire industry in the third quarter of 15% to 16%. The Detroit automaker’s sales grew across each of its brands compared with the same period last year.

If the UAW strike that began on Sept. 15 expands or is extended, GM and other companies could face sales and supply chain problems. Only 25,200 workers, or about 17 percent of UAW members covered by expiring contracts with General Motors, Ford Motor Co. and Stellantis, participated in the work stoppage.

The UAW has been gradually increasing the number of strikes since the shutdown began, with the two sides unable to reach a tentative agreement by Sept. 14. Targeted strikes or “stand up” strikes are taking place, rather than nationwide strikes where all factories strike at the same time.

A nationwide strike affects companies more quickly. The targeted strikes are aimed at protecting union funds and extending the shutdown to prevent automakers from getting into trouble.

Jonathan Smoke, chief economist at Cox Automotive, said the impact of the strike on certain vehicles such as the Chevrolet Colorado and GMC Canyon midsize pickup trucks, where shutdowns have already affected production, could begin to be felt in October.

“So far, the impact has been pretty mild,” Smoker said. said in a blog post on Friday. “If the strike against production sites expands, the products most vulnerable are large SUVs from Chevrolet and Cadillac, which have tighter inventory levels than their domestic competitors.”

For General Motors, the UAW strike affected production of midsize pickup trucks, Chevrolet Traverse and Buick Enclave SUVs.

General Motors’ sales in the United States increased by more than 19% in the fourth quarter, reaching approximately 1.97 million vehicles, of which sales of electric vehicles exceeded 20,000, an increase of 28% from the second quarter.

Notably, the automaker began selling new electric versions of the Chevrolet Blazer SUV and Silverado pickup truck in the third quarter. The company also increased production and sales of the Cadillac Lyriq EV and Hummer models during the quarter. However, sales still pale in comparison to Tesla’s electric vehicle deliveries.

During the quarter, GM also benefited from growth in new entry-level models such as the Chevrolet Trax and Buick Envista, both of which are imported from Korean plants.