General Motors has not observed a material change in consumer purchasing patterns tied to the recent rise in gasoline costs, the automaker's finance chief said on Wednesday.
Speaking at a Bank of America Conference, Chief Financial Officer Paul Jacobson attributed first-quarter sales movements more to adverse weather and tighter-than-normal inventories than to the increase in fuel prices associated with tensions in Iran. Jacobson noted that the inventory shortfall was most acute in the truck segment as GM prepares to roll out a new generation of full-size models.
"Usually it takes four to six months of sustained high oil prices before people start to think, 'Maybe I should go for less mileage, or maybe I should buy down,' I dont think we see that," Jacobson said.
The U.S. Energy Information Administration reported on Tuesday that the average price per gallon of gasoline in the United States has risen 27% since late February, to $3.72. Despite that jump, GM's finance chief conveyed that the company is not seeing an immediate, measurable shift toward smaller or more fuel-efficient vehicles.
Jacobson's comments highlight two principal factors shaping GM's recent retail performance. First, weather conditions that can disrupt shopping and delivery schedules played a role in quarter-to-quarter comparisons. Second, supply-side constraints within GM's own inventory - with a pronounced shortage in trucks - limited the company's ability to meet certain demand profiles, particularly as the automaker readies updated full-size offerings.
The remarks make clear that, for now, GM sees inventory dynamics and short-term weather effects as the primary drivers of its reported sales trends, rather than a direct consumer response to higher pump prices. The company did not provide additional detail on inventory levels or projected timing for the introduction of its new full-size truck models during the remarks quoted.
Observers should note the finance chief's timeframe for behavioral change in response to oil-price pressure: Jacobson emphasized that a period of four to six months of sustained elevated oil prices is typically needed before buyers begin to alter vehicle preferences. Given that, the potential for a lagged consumption response exists, but GM reported no immediate evidence of it in the quarter under discussion.