GM Monthly Sales Down 34 Percent After Bankruptcy

Reuters Created: Jul 1, 2009 Last Updated: Jul 1, 2009
Roseland Pontiac, which has sold GM products at this location since 1911 will close when GM discontinues the Pontiac brand later next year. (Scott Olson/Getty Images)
DETROIT—General Motors Corp Wednesday reported a 34 percent drop in monthly U.S. sales for June, its first sales results since it filed for bankruptcy in a restructuring funded by the Obama administration.

GM, which filed for bankruptcy protection on June 1, said that it delivered 176,571 vehicles in June, compared with 265,937 a year earlier, roughly in line with analysts' expectations given the turmoil of its restructuring.

Still the top-selling automaker in the United States, GM's sales declines were led by brands it expects to carve away as part of its restructuring.

Sales at GM's Saturn brand fell 60.2 percent, Saab sales were down 58.4 percent and Hummer brand sales were down 48 percent from a year earlier. GM hopes to sell those brands.

However, sales at the Pontiac brand were down 16.4 percent. GM plans to wind-down the Pontiac brand gradually and focus on its Chevrolet, GMC, Buick and Cadillac brands.

The automaker also said in a call with analysts that it saw some softening in demand toward the end of June and said there was still evidence of some headwinds in the U.S. economy.

GM said it produced 394,000 vehicles in the second quarter in North America, down about 53 percent from a year earlier.

GM declined to disclose a third-quarter production plan.