Tomahawk, WI 9/09/2013 (BasicsMedia) – General Motors Company (NYSE:GM) had its best month in August 2013 with auto sales in the U.S. exceeding the high expectations laid out for the month and the total sales surpassing the sales rate reported in any month for the past six years. It was further reported that the rate of auto sales was the fastest ever recorded rate since 2007. According to the reports from Autodata Corp., the car and light truck sales in the U.S. for the last month increased by 17% to touch 1.5 million units, the highest ever sales reported since May 2007.

S&P revises outlook

The outlook on General Motors was increased from the earlier stable rating to positive rating by the Standard & Poor’s following such reaping of profits by the Detroit automakers, something which was not seen since the turn of this century. This outlook proves to be a sign that the ratings company would move forward to increase the rating of GM to investment grade by the end of 2014. The report from S&P states that they would continue to monitor the ability of the car maker to maintain the market share and profitability in North America.

New vehicles in the U.S.

Presently, the corporate credit rating given to GM is at BB+, the highest grade in the non investment category. It is reported that the company is planning to launch around 18 new and refreshing vehicles in the U.S. markets in this year to provide for a transformation of the carmaker to be one of the newest performer in the industry. The news of the introduction of new vehicles added with the announcement of US government to exit its ownership of General Motors helped boost investor confidence, on the company’s ability to foster its profits.

Recent developments

General Motors recently closed out all its unnecessary operations and rolled out better and high performance cars into the markets, from the resultant increase in the demands from both fleet and retail buyers resulting in a record increase in the average prices paid for new vehicles. Further, the automobile industry presents healthier prospects for growth which prompted such carmakers report high level of sales.

Beating expectations

The sales of cars and light trucks reported by General Motors for August increased by 15%, while the analysts estimated the sales to increase by just 11% for the month. Further, the annualized industry sales rate, after due adjustments for seasonal trends, is projected to accelerate to 15.8 million, according to a consensus estimate of 17 analysts, while the sales rate for the previous year was at 14.5 million.

The market share in the U.S. for the three major Detroit automakers namely GM, Ford and Chrysler increased to 45.4% this year, from the market share at 44.8% in the previous year. All these bright prospects of strong growth of car sales in the near future and the positive confidence building amongst investors helps put GM to be a strong buy.

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