The Real Reasons Behind GM’s Switch To Quarterly Sales Reporting Read more: http://gmauthority.com/blog/2018/04/the-real-reasons-behind-gms-switch-to

[Bryan1]

Last month, General Motors announced that it will no longer report its sales results on a monthly basis. The Detroit-based automaker will share sales data on a quarterly basis instead. The move breaks an auto industry tradition that has lasted longer than similar changes in sales reporting in the technology and retailing, along with other sectors. Let’s explore what’s behind GM’s decision.

GM insists that a mere thirty days is too short a time frame to determine trends related to sales, demand, and supply in the automotive industry. Like other publicly-traded firms, the automaker already reports its financial results on a quarterly basis, rather than monthly.

“Thirty days is not enough time to separate real sales trends from short-term fluctuations in a very dynamic, highly competitive market,” Kurt McNeil, GM’s U.S. vice president for sales operations, said in a statement. “Reporting sales quarterly better aligns with our business, and the quality of information will make it easier to see how the business is performing.”

As any amateur statistician will tell you, however, more (accurate) information – not less – is key to trend and pattern derivation. But we’ll save that topic for another time. For now, we’ll conclude that GM wants to control the flow of sales-related information for its own benefit.

Read more: http://gmauthority.com/blog/2018/04/the-real-reasons-behind-gms-switch-to-quarterly-sales-reporting/#ixzz5EV0JjVqp

 

 

 

 

 

[Bryan1]

Comment from Alex Luft.

 

Alex Luft says:

May 1, 2018 at 11:12 am

Not sure how the fact that analysts now have less data to work with is a good thing, or how it will help GM’s objective of preventing swings in share price. That makes no sense.

What should have been done is quite the opposite: continue to provide monthly sales results, but explain the results better/with more detail.

They’re taking the easy and lazy way out… much like with their products, such as offering sub-par features and options on the Silverado, canceling cars like the Sonic and Impala that have a lot of potential as redesigned models, and offering generally mediocre products across the board. That’s the bear perspective, anyway.