Big SUVs Mean Big Profits for General Motors

GM is riding the big waves of big SUV profits. 

Sales of the General’s big SUVs surged last month, the Suburban was up 86 percent, 81 percent for the Tahoe, 61 percent for the GMC Yukon, with the Yukon XL posting a further 27 percent plus. According to Automotive News GM saw a 69 percent gain from just those four nameplates, compared to the segment’s 4.9 percent increase.

The party continued in SoHo as well, with the Cadillac Escalade climbing 9.2 percent, while the large premium SUV segment dropped off 1.9 percent.

Cumulatively, 45 percent of all large SUVs which found new homes last month originated from a General Motors dealership, up 10 percent compared to the same period last year.

Retail sales rose 33 percent to 18,815 units, accounting for 68 percent of GM’s total volume.

While margins in the large SUV segment can easily top 20 percent, a chunk of GM’s share gain can be attributed to a quadrupling of GMC/Chevy fleet sales, to 8,957 units. However, do note the surge was to commercial and government buyers, not the ultra-low margin rental-fleet business.