General Motors To Drop Monthly Sales Report, Enticing Others
Zacks Investment Research | Apr 02, 2018 10:40PM ET
In a pioneering move, General Motors Company (NYSE:GM) has reportedly taken the decision to abandon its usual practice of reporting sales on a monthly basis in favor of quarterly reporting. The U.S. auto giant is of the opinion that sales releases every month does not provide the true picture of the company’s intricate operations or the health of the auto industry, as it includes short-term fluctuations. However, per management, quarterly sales releases will provide a better idea about the health the company.
To date, experts heavily rely on monthly vehicle sales data to not only gauge the performance of individual automaker but also to get an idea about the shape of the auto market. Earlier automakers used to report their sales every ten days. Monthly reports became the standard industry practice since early 1990s. Per the latest monthly sales report, in February 2018, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales declined to 17.08 million units from 17.45 million in the year-ago period. Among the auto biggies, both General Motors and Ford Motor Company (NYSE:F) reported a 6.9% decline in U.S. sales. Among the other automakers, sales of Fiat Chrysler Automobiles N.V. (NYSE:F) , Honda Motor Company, Ltd. (NYSE:HMC) and Nissan Motor Co. (OTC:NSANY) declined 1.4%, 5% and 4%, respectively. The only exception was Toyota Motor Corporation (NYSE:TM) , which witnessed a 4.5% rise in sales. (Read more: Original post
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