GM’s strong second-quarter performance underscores its resilience and strategic focus on expanding EV and full-size pickup sales. Despite challenges such as the CDK cyberattack, GM is poised to continue its upward trajectory in the competitive automotive market.

Key Highlights

– GM’s quarterly sales hit highest since Q4 2020.

– Notable increases in full-size pickup and EV sales.

– Cyberattack on CDK Global impacts dealership operations.

– Industry forecasts mixed for overall sales growth.

General Motors (GM) has achieved its best quarterly sales in over three years, driven by significant gains in both full-size pickup trucks and all-electric vehicles (EVs). The Detroit-based automaker reported sales of 696,086 units for the second quarter, marking a 0.6% increase from the previous year. This is the highest quarterly sales figure GM has recorded since the fourth quarter of 2020.

Among the notable highlights, GM’s EV deliveries surged by 40% year-on-year, reaching 21,930 units. However, despite this impressive growth, EVs still accounted for only 3.2% of GM’s total second-quarter sales. Meanwhile, sales of GM’s full-size pickup trucks soared to approximately 229,000 units, a 6% rise from a year earlier, marking the best quarterly performance since 2021.

Year-to-Date Sales and Industry Comparison

Despite the strong second-quarter performance, GM’s total sales for the first half of the year were slightly down by 0.4%, totaling around 1.3 million vehicles. Nevertheless, GM’s second-quarter sales are anticipated to slightly outpace the overall auto industry. According to industry forecasters like Cox Automotive and Edmunds, overall second-quarter sales, including those in early July, are expected to remain roughly level compared to last year, as retail demand begins to slow.

Impact of Cyberattacks on Dealership Sales

An unexpected factor influencing second-quarter sales was a ransomware attack on June 19 that targeted CDK Global, a major dealer software provider. This cyberattack forced CDK to shut down its dealer management system, affecting nearly half of all dealerships in North America.

Jessica Caldwell, Edmunds’ head of insights, commented on the situation: “The CDK cyberattacks have thrown a monkey wrench into sales during the second half of June, affecting what is arguably one of the most lucrative and busiest times of the month and quarter for dealerships.” GM acknowledged the disruption, stating, “Dealers who use the CDK platform are working to meet strong customer demand under difficult circumstances. Some deliveries may be delayed until Q3.”

The cyberattack compelled dealerships, including the largest publicly traded ones, to delay sales or find alternative methods to process transactions. Major dealership groups such as Asbury Automotive Group, AutoNation Inc., Group 1 Automotive Inc., Lithia Motors Inc., and Sonic Automotive Inc. all disclosed their reliance on CDK as their primary dealership management system provider.

Caldwell offered a silver lining, noting, “The good news is — unlike other black swan events that the industry has contended with in the past — sales shouldn’t be lost or severely deferred, but rather pushed into the third quarter.”

Competitive Landscape

On the same day GM reported its sales, Toyota announced its second-quarter U.S. sales, totaling 621,549 vehicles, a 9.2% increase from the previous year. Hyundai also reported a 2.2% rise in its sales for the quarter, reaching 214,719 vehicles. However, Kia, which releases sales figures monthly, saw a 6.5% decline in June sales and a 2% drop in its year-to-date sales, totaling 386,460 vehicles.