GM Sales Rise 7 Percent Despite Recall

Despite the odds, General Motors has overcome its recall woes to post strong numbers in April, when sales rose 6.9 percent, Bloomberg Businessweek reported. The figure topped estimates by industry analysts, who had predicted a 5.7 percent gain, and reflected general growth for the car industry.

GM, which enjoyed spring sales boosted by its new Chevy Silverado and GMC Sierra pickups, has been operating under the pall of a 2.6 million-vehicle recall for a bevy of small-car models. Despite the recall's connection to 13 deaths, experts believe it won't impact GM sales in the long run.

Compared to last year, "trend in GM's total and retail sales has only improved since news of its ignition-switch recall affecting older-model cars became widely reported upon in the media--we believe furthering our thesis that GM market share will not be materially impacted as a consequence of the issue," Ryan Brinkman, an industry analyst with JPMorgan Chase & Co., said yesterday in a note to investors, as reported by Businessweek.

Overall, vehicle sales in the U.S. were at their highest since the mid-2000s for the month of April, with around 1.4 million cars sold, the Los Angeles Times reported. If the growth continues, vehicle sales for 2014 could hit the 16.5 million mark, passing last year's numbers by 10 percent.

GM was far from being the only automaker with good news. Chrysler reported a 14 percent sales jump for the month year-over-year, posting its best April sales since 2007. Ram had its best April of all time with a 17 percent sales increase, while Jeep saw its best monthly sales ever, a 52 percent increase compared with the previous year.

Toyota reported a 13 percent rise in monthly sales; Hyundai posted its best April of all time with a 4.4 percent gain year-over-year and more than 66,000 vehicles sold; and Nissan had a sales increase of 18 percent.

"These are the best monthly numbers since before the recession started," Edmunds.com senior analyst Jessica Caldwell told the L.A. Times.

American carmaker Ford wasn't so fortunate, reporting a 1 percent sales decline from the previous April with around 211,000 vehicles sold.