GM February Sales Rise 12%, Announces New Incentives

General Motors Co. on Tuesday reported that its sales increased 12 percent in February on a year-over-year basis, on strong demand for its crossover vehicles and doubling its sales to fleet operators.

The retail sales for the company’s four core brands, which include Chevrolet, Buick, GMC and Cadillac, rose 7 percent for the month.

February marked the fifth consecutive month that retail sales improved for the remaining four GM brands as the company recovers from a downturn that has threatened to cripple the U.S. auto industry.

The company is also selling off the remaining inventory of its remaining Hummer, Pontiac, Saab and Saturn, as these brands are leaving the GM family of products as part of a government funded restructuring program. Sales for these brands were down 86 percent from last year, representing just 2 percent of the company’s overall sales for the month.

The Detroit-based automaker said that the average transaction price for February was up $4,000 compared to the same month last year, while the company has reduced sales incentives, to just $200 above the industry average last month.

GM sales analyst, Mike DiGiovanni said that the storms across the U.S. in February likely caused a negative sales impact of around 5 percent in February, while economic conditions remain a concern.
“We see the primary risks in housing and employment," DiGiovanni said as he called the current confidence of consumers "tepid."

Overall sales of the four core brands were up 32 percent in February, while fleet sales increased by nearly 115 percent.

GM announced on Tuesday that it will offer 0 percent financing for 72 months on remaining 2009 models and for 60 months on its 2010 inventory.

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