Revenues from commercial vehicle sales are up, but GM says GMCO is not seeing a benefit September 29, 2021 September 29, 2021 admin

Commercial vehicle sales in California fell 6% in 2017, according to an analysis by Gartner, a commercial technology company.

In the United States, the sector is experiencing the worst recession since the Great Depression, but the sales decline has coincided with rising interest rates and the expiration of the state’s fuel tax.

Gartners report comes as automakers seek to avoid another year of losses.

“While sales growth is expected to be weaker in 2018, we believe that the significant improvements in consumer spending, including a reduction in car debt, may lead to a rebound,” the analysts wrote.

“We expect GMCO sales to remain weak, and we believe the industry’s recovery will slow in 2019.”

The report comes a day after Tesla Motors announced that its first full-year profit for 2018 came in at $1.4 billion, but also said that the carmaker was suffering from a “massive” backlog of orders and that it was preparing for the worst.

Tesla’s shares are up 5% since the announcement.

The Gartener analysts wrote that GMCO’s sales growth in 2017 was largely driven by “high-volume” vehicles and said that commercial vehicle volume “was not as strong as it should have been.”

The analysts wrote: “We believe GMCO will continue to experience modest, sustained positive sales growth for the foreseeable future.”