Sales for General Motors Company (NYSE:GM) continued to impress as the number of vehicles sold by the company in the U.S. in June surged 15.5% to 248,750 buoyed by strong incentives and lower interest rates offered. All of its four brands (Chevrolet, Buick, Cadillac and GMC) posted double digit growth rates.
Although GM posted a weak first quarter, it has done well this quarter with vehicles sales growth of 11% in May and now a 15.5% growth in June. Chevrolet’s Malibu Sedan and Equinox, in particular, were strong performers, rising 32.3% and 15.8%, respectively. 
The company continued with its momentum in China as it posted a 10.1% jump in the number of vehicles sold in June. For the first six months of the year, total vehicles sold stood at 1.43 million, up 11.3% from the previous year. We reckon GM’s China operations is the most important segment, contributing more than 37% to the total stock price. 
We currently have a Trefis price estimate of $27.50 for General Motors’s stock, which is about 25% above the current market price.
GM Shines at J.D.Power Ratings
General Motors had its best ever rating at J.D.Power & Associates’ new-car quality survey in the 26-year history of the survey. The Chevy Malibu, owned by GM, beat Ford Fusion and Honda Accord as the best mid-sized car. Among the pickup trucks, GMC Sierra and Chevy Silverado were ranked first and second, respectively. In the mid-sized premium SUV category, Cadillac SRX was ranked third. Cadillac’s Escalade was rated the best car in the large premium SUV category and was voted the third best vehicle. Overall, Toyota Motors’ (NYSE:TM) Lexus topped the survey for the second time in the running.
J.D.Power ratings is one of the most trusted surveys and top automakers vie to improve their respective scores each year. With improved scores in the survey, the likelihood of the automakers posting healthy sales growth is higher. ((GM Gets Its Best Quality Scores; Jaguar Joins Lexus, June 20,2012, businessweek.com))Notes:
- GM June 2012 Sales Climb 15.5 Percent to Highest Month Since September 2008, July 3, 2012, automobilemag.com [↩]
- General Motors’ China June car sales up 10.1%, July 4,2012, marketwatch.com [↩]