GM’s new big SUVs increase profits image

The introduction of the new line-up of full size SUVs came exactly at the time needed by GM, with sales and profits going up for the high margin models.

The biggest US automaker is navigating shallow waters at the moment, with a huge public relations scandal, probes from every possible federal authority and lawsuits mounting in relation to the untimely recall of 2.6 million cars for defective ignition switches linked to at least 13 fatalities.

Still, sales for the first four months have not been affected much, with the company still posting better than expected numbers. At least in part, the reason for the positive results is to be “blamed” on a bunch of models – the all-new Chevrolet Suburban and Chevy Tahoe and their GMC siblings, the Yukon and the Yukon XL.

They all entered dealerships in the first quarter and they immediately made an impact on the automaker’s line and sales, as they rather lack true competitors and don’t face the same quality issues the smaller – compact cars for example – have to face.

“We’re selling every one we can build,” said Rick Scheidt, GM’s new vice president for truck strategy.

The Chevrolet Suburban and Chevrolet Tahoe need 10 and 17 days to sell, which is far bellow the industry average, while the Yukon needs 22 days. Also, the company said its full-size SUV sales in April for the Tahoe and Suburban were double the same period in 2013 and collectively, GM’s SUVs have had in the first quarter a 78% market share.