General Motors (NYSE: GM) will begin reporting U.S. sales at the end of each quarter instead of at the end of each month. March will be the last monthly sales report from GM.
The automaker – formerly one of the biggest companies in the world -- says dropping monthly sales reports was driven by a number of factors, including the desire to stop the volatility that sometimes exaggerates monthly sales.
GM says unusual weather, product launches or incentive campaigns can skew monthly numbers up or down.
The move paves the way for other automakers to do the same thing. In the early 1990's, many automakers reported sales every ten days, while Chrysler (NYSE: FCAU) posted its numbers on a monthly basis. By the mid-90's all of the major automakers were on a monthly sales schedule.
Tesla (NASDAQ: TSLA) has never reported sales on a monthly basis and there's no indication reporting deliveries on a quarterly basis has hurt or helped Tesla's stock. Still, when auto sales were plunging in 2008, the monthly sales reports helped investors, analysts and lawmakers in Washington understand how quickly the auto industry and economy were deteriorating.
If that scenario repeats itself at some point in the future, and we learn the severity of slower sales just once every three months, that could cause more alarm among investors.
Even without GM's report, other sources including dealers, suppliers and analysts will continue to give us insight into how auto sales are progressing throughout a quarter.
GM shares began Tuesday up 87 cents a share, or 2.4%, to $36.63
Related Stories
