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# SUV Sales Driving GM Amid Recall Losses

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<!-- video src="https://cdn.jwplayer.com/manifests/0NXAG8Jo.m3u8" -->
## Video: SUV Sales Driving GM Amid Recall Losses

[Watch (HLS stream): SUV Sales Driving GM Amid Recall Losses](https://cdn.jwplayer.com/manifests/0NXAG8Jo.m3u8) (1:45)

![SUV Sales Driving GM Amid Recall Losses](https://cdn.jwplayer.com/v2/media/0NXAG8Jo/poster.jpg?width=720)

_Published 2014-07-25. Despite millions of recalls totaling billions of dollars, General Motors is seeing a growth in sales thanks in part to an increasing demand for SUVs._


---

Jul 27, 2023 5:03 PM UTC

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## Transcript

Despite millions of recalls totalling billions of dollars, General Motors is seeing a growth in sales, thanks to, in part, an increase in demand for SUVs. The automaker has recalled more than 29 million vehicles this year, costing the company more that $ 2. 5 billion. But embracing a pre- recession playbook, GM has added about $ 1 billion to their bottom line from sales of large S. U. V. s, according to the New York Times. GM didn't provide profit margins, but analysts estimate the company has to sell about five small cars. To equal the profit gained from 1 of its large SUV's. While competitors like Ford and Nissan have largely shifted resources away from such large vehicles, GM has stayed with them.

And it now commands more than 70 percent of the market. That's even more dominant than it was in that market before it took a $ 49. 5 billion taxpayer bailout in 2009. But it isn't just GM who's seeing increased profits from sports utility vehicles. While GM controls the market for larger SUVs, companies like BMW, Toyota and Lexis have all seen about a 15 % sales increase. For their smaller luxury SUVs this year, Edmunds. com Senior Analyst, Jessica Caldwell, told ABC this a new heyday for SUVs. For the past 10 months, light trucks have outsold cars. That's the longest streak since 2005, when a 31- month streak lasted from February 2003 through August 2005.

But while the boom for bigger rides points to an improved economy, other indicators don't. The Wall Street Journal reports luxury goods spending is down overall. Sales of such items rose 7 % last year. Down from the 11 % annual rate in 2010 through 2012. Thanks for watching. I'm Jasmine Bailey.

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