Embroiled in an ignition-switch recall that affects 2.6 million cars worldwide and 2.2 million in the U.S., GM has been making headlines for nearly three months. Does the controversy mean lost sales and better deals for car shoppers as the automaker tries to make up lost ground?
Not so much. On May 1, GM announced that April sales were up 6.9 percent, outpacing most analysts' expectations. Even Chevrolet, the brand whose Cobalt compact and HHR hatchback topped the recalls, gained 5.3 percent.
Still, by day's end it was clear the General would lose some market share; after all, industry sales gained 8.1 percent overall. And when May incentives rolled out the next day, GM had raised cash offers on a number of cars. The 2014 Chevrolet Malibu, Camaro and Traverse saw upticks in cash-back and cash-with-financing deals versus month-ago and year-ago levels (on 2013 models at the time). GMC, Buick and Cadillac saw fewer incentive increases, but the 2014 Buick LaCrosse and Encore did see more cash on the hood versus year-ago 2013 levels. In fact, year-over-year purchase incentives across GM's lineup appreciably decreased on just two models.