Truck sales are booming. Not every company is reporting vibrant sales, but General Motors is an exception. GM trucks are doing incredible business. Those who thought truck buying would wane in the purported era of the hybrid car were wrong. American consumers do love their trucks. Right now, the United States is in the midst of a “truck craze” and General Motors is reaping the rewards.
GM earned $9.7 billion in revenues for 2015. Truck sales were a large part of the revenues, and SUV sales were strong as well. Car sales do not seem anywhere near as huge, but the truck and SUV sales definitely carried the year for the Detroit automaker. Less than a decade ago, there were serious fears General Motors would be in dire financial shape. Rebounding was thought to be very difficult. The ebbs and flows of the market can swing in any direction and, in this case, the swing was towards larger profits. GM delivered models consumers found appealing. Big sales followed.
Analysts like Marc Sparks are also looking at whether or not the massive boom in sales is sustainable. No, this is not a cynical attempt at downplaying the red hot sales. Rather, questions about whether or not sales are going to remain high allow General Motors to be ready and more prepared for a possible drop-off. Sales are sure to fall somewhat after hitting a massive and unexpected peak.