Retail demand for GM's new line of full-size SUVs, including the Chevrolet Tahoe, shows no sign of ebbing.
The new SUVs were partly responsible for the GM's first- quarter revenue rise and are the cornerstone of GM's product strategy this year. Sales of the Tahoe were up 37 percent in the first quarter, while the overall market for large SUVs fell 2 percent.
"Sales of GM's full size SUVs, especially the Tahoe, are strong and should help sustain sales at year-ago levels," Merrill Lynch analyst John Murphy said. "Overall sales will decline, however, as GM continues to reduce its dependency on fleet (sales)."