Full-Size Sales and Incentives Hurt GM

Posted by Mark Williams | December 4, 2012

Nobody said the full-size truck market was an easy place to get sales, and November 2012 will likely to go down in the history books as a prime example, especially for Chevy and GMC dealerships.

According to Automotive News, Alan Batey, GM's U.S. sales chief, was shocked and surprised that Ford and Chrysler were offering so many high-dollar incentives and promotional deals to consumers. In fact, according to GM, the average amount of money spent was $500 more per pickup, with the highest amounts totalling as much as $1,500 and $1,700 more than Chevrolet or GMC.

Of course, Ford and Ram were spending big mostly because they are trying to sell down their 2012 models on the lots to make way for either an all-new 2013, like the Ram 1500, or significantly upgraded models, like the 2013 F-150.

In some ways, GM is suffering from the fact that it has a highly anticipated all-new model coming for 2014, so it needed to build up a hefty stockpile of 2013 models to accommodate the change-over downtime that each of the half-ton production plants will need to endure while manufacturing changes are made. (For those who keep track, that's why the days' supply of GM half-tons is higher than they would like, at 139 days.)

If there's a silver lining to any of this, Batey notes, it's that even though GM's sales may be flat or a touch behind compared with last November (some dealers attribute it to fewer incentives), the automaker does have an average transaction price about $2,700 higher than last, all of which goes directly to GM's bottom line.

It's no surprise that Ram dealers want to get rid of the 2012 models quickly to make way for the coming all-new Ram 1500, but the big test will come when we see how well the market responds when the full lineup is available. Likewise, GM dealers will need to be very careful how they prepare themselves when the all-new Silverado and Sierra 1500s finally roll off the plant lines.

Dealerships and truck makers will have to be very careful how much money they're willing to put on the hood of a new truck just to make a sale. Toyota found out how punishing that game can be, and we're guessing GM will have to be very good about walking the tightrope with its new truck as well.

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Comments

ZZZZZZZZZZZZZZZZZZZ!!!!!!!!!!!!!!!!!!

Posted by: HEMI V8 | Dec 4, 2012 10:18:06 AM

MORE GUTS
MORE GLORY
MORE SALES THAN EVER BEFORE
The ALL NEW 2013 RAM!

Posted by: HEMI MAN | Dec 4, 2012 10:29:11 AM

(Aka this means Chevy is in trouble.)

Posted by: DODGEGUY | Dec 4, 2012 10:35:32 AM

Chevy was in trouble a long time ago. Now everyone is starting to realize it.

Posted by: DLF | Dec 4, 2012 10:46:32 AM

"all-new 2013, like the Ram 1500, or significantly upgraded models, like the 2013 F-150"

"all-new", "significantly upgraded"

Did I miss something?

Posted by: Gregory J. | Dec 4, 2012 11:06:23 AM

They'll be fine. Just like Ford and Dodge did last month, they will raise incentives now and people will buy them like hot pancakes. For average Joe these days price is what will sway him in one direction or another. Dodge had $8K on the hood last month on average. That's a lot of green ones. Some peoples 6 months salary.

Posted by: Gregory J. | Dec 4, 2012 11:16:15 AM

cry babies comes to mind. You mean to tell me they don't watch tv or see what the competition is doing?

Sales fell because the other two have a better product.

Posted by: Scott | Dec 4, 2012 11:23:38 AM

A better title for this article would be "Competition Hurt GM".
Ram and Ford know GM is piling up old models on dealer lots and they are going for GM's throat! If these stock piled trucks are actually counted as sales numbers, as what has been reported, then they are screwed. Now they have to cut production so they can sell trucks that have already been counted as "sold". Then the next article will be titled "Butt Hurt GM".

Posted by: JimD | Dec 4, 2012 11:33:19 AM

My local Dodge dealer is already advirtising 8K off 2013 Rams, and I bet you could get down a bit more then that.

Posted by: Richard | Dec 4, 2012 11:37:46 AM

In early Oct, when GM's truck inventory was at 119 days and investors were upset, GM said they were "on target to reach its goal of 80-85 days worth of pickups by the end of the year." Fast forward 60 says and they have ADDED 20 more days to their inventory. They now have less than 30 days to sell 50 days worth of inventory in order to meet their goal, and even then only if they stopped production from every truck plant for the rest of the year starting last week. Rut Row Scooby.

Posted by: Ramalamadingdong | Dec 4, 2012 11:53:47 AM

"Those 245,852 pickups are out of a total November inventory of 788,194. Put another way, that means one out of three vehicles on GM showroom lots is a pickup truck."
http://jalopnik.com/5965170/how-will-gm-ever-get-rid-of-all-those-pickup-trucks

Posted by: Ramalamadingdong | Dec 4, 2012 12:07:41 PM

GM is closing truck plants for the rest of the year. On the same day Ford announces they will be increasing production by 11%.
Wall Street Journal:
http://online.wsj.com/article/SB10001424127887323401904578157321335154246.html

Posted by: Ramalamadingdong | Dec 4, 2012 12:11:50 PM

Oh crap!

Posted by: Frank | Dec 4, 2012 12:17:07 PM

@Ramalamadingdong

Have you heard that GM has a new Silverado and GMC coming this fall?

Do you realize GM has to retool it's plants for the new truck? That would require them to shutdown production.

Did you now that GM has been building up it's supply of trucks to offset the loss of production during the plant shut downs? I mean GM has only been saying this sice July.

Posted by: Jack | Dec 4, 2012 12:20:10 PM

Oops I mean spring...

Posted by: Jack | Dec 4, 2012 12:21:20 PM

This finally brings GM shareholders and GM dealerships together. They are both screaming "SELL SELL SELL".

Posted by: Jason | Dec 4, 2012 12:23:32 PM

@Jack, Yes I do realize that they intended to boost their inventories. And if you read GM's own comments, they say they intended to have 80 - 85 days of truck inventory by the end of the year. You do realize they are at 139 days of inventory right? And did you know there are only 3 weeks until the end of this year?
On a positive note, if GM can sell those trucks through next year without lowering the price or boosting the incentives, they can increase profits quite a bit.

Posted by: Ramalamadingdong | Dec 4, 2012 12:31:01 PM

Seems like much of these dodge/ram posts are from the same teenaged poster.

------

GM has a long few months of decline awaiting them. Their new pickup product cycle ain't cutting it.

Posted by: Ken | Dec 4, 2012 12:35:21 PM

Let's be realistic. GM's sales problems have nothing to do with its competitors offering better incentives. If it did, all they'd have to do is match them. Face it, this entire model year GM sales have lagged while the others have boomed. The reason is clear: quality of product. When GM can offer a truck that matches the competition their sales will improve. Meanwhile, GM trucks are very ho-hum.

Posted by: S | Dec 4, 2012 12:39:13 PM

GM lies.

The incentives 2012 models according to cars.com are as follows...

Ram $1500.
F-150 $2000.
Chevy Silverado $3500.

http://www.cars.com/go/advice/incentives/incentivesAll.jsp?zc=18337

Posted by: Dave | Dec 4, 2012 12:58:37 PM

GM lies again.

Tundra $3000.
Chevy Silverado $3500.

http://www.cars.com/go/advice/incentives/incentivesAll.jsp?zc=75204#toyota

Posted by: Dave | Dec 4, 2012 1:04:19 PM

GM keeps on lying.

Chevy Colorado $1500.
GMC Canyon $1500.
Toyota Tacoma $500.
Nissan Frontier no incentives

Posted by: Dave | Dec 4, 2012 1:07:46 PM

@Gregory J--I agree. Ram and Ford F-150 have been offering huge incentives on the remaining 2012, on one loaded 2012 Ram they were offering 15k off sticker. Some of the 2013 Rams and F-150 they are offering 8k to 10k off sticker. Chevy and GMC have not offered incentives like these for a while. The dealers around me have many more trucks than cars. I am sure these incentives will slow down next year but for now it has been a truck buyers market where I live and the time to buy is now. I have friends that were going to wait a couple of more years to buy a new truck that bought now because of the incentives and the higher trade-in values. This of course will not last but it has definitely increase truck sales.

Posted by: Jeff S | Dec 4, 2012 1:16:33 PM

LOLOL!!!! Chevy/GovtMoCo Heavy Duty trucks died at the end of 1987 with the loss of their SFA. Only to be replaced by a LOW SLUNG FRAME and Torsion Bars!! LOLOL!!!! IDIOTS!

Chevy/GovtMoCo 1500 trucks died when that 400 model came to an end. Nothing but cheap ass ugly junk ever since. C-Ya Chevrolet. Dodge is taking your position now and Ford better be on alert. This is what happens when you become a cheap ass ugly truck manufacturer. Even the Chevy guys hate GM for it!! LOL!!!

Posted by: MoparMadness | Dec 4, 2012 1:25:38 PM

Might as well stick a fork in Chevy cause they're done. I laugh at their last couple of trucks. Especially this one. Not that the previous one was much to brag about either. Oh well. We'll always have Ford and it looks like Dodge now.

Posted by: JeffEllis | Dec 4, 2012 1:31:32 PM

I warned everybody that bailing out a bankrupt company like GM was the WRONG thing to do!

Now the same management that led to their failure are making the same stupid decisions because they know damn well if GM gets in trouble again, the taxpayers will foot the bill!

GM should have never went above the law (because of politics and re-election campaigns and political contributions) and skip proper protcol which was federal bankruptcy court!

Why you guys accept this type of behavior from the federal government and keep on electing the same morons into office is beyond me!

GM is a joke!

Posted by: oxi | Dec 4, 2012 1:36:44 PM

GM lies again and again.

From truecar.com

Average price paid below MSRP on a 2012 4x4 crewcab half ton mid range:

Tundra $4782. off

F150: $5415. off

Ram: $6450. off

Silverado: $6742. off

Posted by: Dave | Dec 4, 2012 1:39:13 PM

I'd say the round wheelwell trucks with high end interiors, strong sheetmetal and SFA's have won. Otherwise known as Ford and Dodge.

I can't see Chevrolet ever recovering from the last decade or even two of crap they've churned out. I'd love to be wrong but I don't think they can recover. There's just been too much garbage concerning their trucks. The cars haven't been much better to be honest. GM has slapped the Bowtie on the cheapest piles of junk they've ever built for a good 2-3 decades now. It's almost irrepairable brand damage. Had they at least not done the cheap route with their trucks, most people would probably not complain or worry. Unfortunately, they did. The rusty bodies, the cheap interiors, the piston slap, the poor designs etc.. Everything that plagued GM/Chevrolet cars, plagued Chevrolet trucks as well. I remember back in the early 90's they were going to file for bankruptcy, I look back on that and really think they should have got it out of the way then. Just shut GM down, kept Chevrolet, Cadillac, maybe Oldsmobile and moved forward. Now they're screwed.

Posted by: KeithS. | Dec 4, 2012 1:56:30 PM

GM sucks. They ruined Chevrolet so eff them.

"GM lies again and again.

Silverado: $6742. off"

@Dave, exactly. They can't give these cheap piece of junk GMT-900's away. The next Silverado looks to be no better either. It makes me sick that I supported the bailout of these idiots now.

Posted by: OldChevyGuy | Dec 4, 2012 2:03:16 PM

I'd say the round wheelwell trucks with high end interiors, strong sheetmetal and SFA's have won.

@KeithS., ahhh, if only that had been Chevrolet. Maybe the younger generation doesn't know it but Chevrolet was the leader in round wheel arches, Very thick sheet metal, the best of high end interiors And they had SFA's for decades. They may suck now but I can tell you for a fact, there was a time when they were the kings of all things mentioned above. Ford and Dodge had nothing on Chevy. Maybe it's all over now for good. I don't know.. I can tell you though, Chevrolet was once king. I lived it and I bought it many of times.

Posted by: WaltRogers | Dec 4, 2012 2:11:16 PM

@Keith, couldn't have said it better myself.

Maybe the younger generation doesn't know it but Chevrolet was the leader in round wheel arches, Very thick sheet metal, the best of high end interiors And they had SFA's for decades. They may suck now but I can tell you for a fact, there was a time when they were the kings of all things mentioned above. Ford and Dodge had nothing on Chevy.

@Walt, 100% correct sir. Back in my day, you could touch a Chevy's body durability, interior luxury, exterior looks, or off road capabilities. It's almost as if it's not even the same company or people anymore. Surely it can't be. It's almost Chevrolet in name only, not in spirit nor reality.

Posted by: BillDeWalt | Dec 4, 2012 2:23:09 PM

If the GM team were serious about a revamp of the truck line they would take a few minutes and read here...no market surveys or focus groups required.

They would figure out the direction they need to go.

Posted by: Scott | Dec 4, 2012 2:26:30 PM

Poor Chevy loyalist morons..... Want me to hold a funeral for your beloved company? Give me a break. Your trucks suck now. Get over it. Maybe your idiot leader Mr. Ackerson can "Spinkle the Holy Water" on Chevrolet like he said Ford should do with Lincoln. Nice job he did with the Malibu. 3rd rate garbage just like your trucks. Not ever again will you hold a candle to Dodge or Ford. GM is a penny pinching joke. It will be their downfall after the bailout as it was before. Greed before quality.

Posted by: DodgeMan4Ever | Dec 4, 2012 2:34:59 PM

GM is too busy spending our tax dollars in China on Buick and in Europe on Opel to keep them alive (also known as Buick here in the states) to build real Chevrolet's again. Face it, GM care's not about Chevrolet as much as they do Buick/GM'c'/Opel/China. USA & Chevrolet are second rate in the mind of corporate Govt Motors. Not so with Ford and Dodge. America and trucks still come first. You'll never get a second rate Ford or Dodge. Not in luxury, looks, build quality, or offroad capabilities. You have to go back 10 and 20 years to find those comparable traits in a Chevy.

Chevrolet = Knocking on heaven's door.. (No) Thanks to GM.

Posted by: NewtonConst. | Dec 4, 2012 2:53:18 PM

You GM guys are still hung up on the shape of the wheel wells of your Chevys? What about the rest of the pos ?

Posted by: redbloodedxy | Dec 4, 2012 3:08:21 PM

I know it is popular to bash GM for a this or that but ultimately we should all want them to succeed so that there are more job opportunities on the manufacturing end, supplier end and sales end plus if they do well in places like China, especially on higher margin products like Buick and Caddy, where the profits will go into R&D to help push not only themselves but also spur competition. I do hope we can all agree that more choices and solid competition only benefits end consumers, right?!

Posted by: howam00 | Dec 4, 2012 3:15:27 PM

Chevrolet is done for you moron's. Get over it. You had your century in the sun. It's Ford's turn now. We're only 10-15 years into it. We have a good 60-70 more years to go by your account to be equal. We shall battle Dodge now. Those guys never got a break save for the Hemi engine. Get lost you second rate losers. You couldn't design a good looking truck anymore to save your life and your quality-durability sucks. Nice drop down frame and torsion rods on your 3/4 tons too.. Give me a break.

And no replies necessary from the GMC rebadge crowd. I've never seen a GMC that wasn't Chevrolet powered. Absolutely stupid and pathetic.

Posted by: Leeland | Dec 4, 2012 3:18:16 PM

I'm hearing alot about the construction, quality and interiors of "old" Chev pickups.

But what people aren't realising is that ALL pickups will be made with thinner high tensile steel as well. This trend is about reducing weight and improving fuel economy.

As all vehicles become lighter we will have to be mindful of their treatment. If the pickup bed are to light put a tray or flatbed on it, then it will last longer. If you don't want to do that then you really don't use your pickup for hard work.

But if you use them as an SUV take care of them.

GM, as as most American vehicle manufacturers over produce. If you want your pickups in the future the Big 3 will need to produce less to increase price due to supply and demand.

As I have stated in the past you guys pay to little for your vehicles, that's why the Big 3 will go broke again. People can tell me how profitable pickups are, but why are there fiancial problem in the auto industry. The US has to live within its means and stop expecting the "olden days".

Pickups will never lay the "golden egg" as the competition is to fierce.

Also to the people who think your tax dollars are going to China, that's a furphy, it's more like Chinese money supporting the US.

Money has been coming out of China to GM to support American operations, just like GM has drained their operations in Australia and now want to have our government give them money to retool. I think they have been told the money was here and what happened to it. I hope we don't give them financial support.

Auto manufacturers for to long have expected governments worldwide to support them for to long. I do think the time has come for businesses and farmers etc to start being truly competitive and not be subisdised.

If this happens prices will rise, but your deficit will fall and you can start paying the world for your excesses.

The over production problem is more a US problem. Previously when the US over produced it sold alot of the over production overseas. Who is going to buy you products now? When it can be bought cheaper from other countries.

Posted by: Big Al from Oz | Dec 4, 2012 3:20:53 PM

-Pftt. As a Chevy guy (or used to be), I can say without a doubt, they both suck. The square wheel wells were cool in the 70's/80's. In the 90's it was alright just because of the freshness of the GMT-400's. After that, it became redundant. And yes, the rest of the truck (minus the SBC engine and transmission) sucks. Cheaply built garbage in my book since 1998.

Posted by: RyanHKS | Dec 4, 2012 3:23:17 PM

- GM's are Pure S#@T......
http://www.gm-trucks.com/forums/index.php?s=165d478e3f2333aa619edc4c494cc0d1&showtopic=119648&st=0

Nice wavy sheetmetal over the rear wheels Chevy. Pathetic.

Posted by: S.Milnow | Dec 4, 2012 3:27:13 PM

wow we have stupid comment they only reason gm sales have problem people waiting for the new model.dont forget ford never surpass gm in truck sales ..

Posted by: miath | Dec 4, 2012 3:30:47 PM

@Big Al, Our tax dollars that went to Government Motors Corp did indeed go to China an Europe. There's no other way to spin it. Yes, we're in debt to China. Why give them More of our money? Screw GM. Chevrolet never needed a bailout. Only the rest of Government Motors. And Ford + Dodge and even Toyota + Nissan Never built something as chintzy as the current Silverado.

Posted by: S.Milnow | Dec 4, 2012 3:33:02 PM

@miath, they did Chevrolet. Who cares about GM. What, you need 2 trucks to go against Ford's 1 truck? lol.

Posted by: SK | Dec 4, 2012 3:36:11 PM

I hope they do indeed have a great new model when come out with it next year. I think it's important to keep the big 3 strong. But I read an interview last week with GM's Mark Reuss, where he said the new trucks will be a softer design, and not as tough as the other brands have been recently. I swear that is the exact opposite of what GM said in an article posted on this site a couple months back. I think they said then that the new design will be more masculine like Ram and Ford. It makes you wonder why they would have such mixed signals about such a key product release.

Posted by: Ford850 | Dec 4, 2012 3:41:48 PM

wy ford is afraid to implant j2807....for gcrw...it is because what THEY SAID about pulling number is not true..number be different like lower...if you look all the hd test gm truck always pull better ....

Posted by: miath | Dec 4, 2012 4:04:55 PM

@Ford850, I hold Mark Reuss solely responsible for the success or failure of the next Chevrolet Silverado vs. the Ford F-150, Ford Super Duty, Ford Raptor, Dodge Ram, Dodge Power Wagon and Dodge Ram Runner. If Chevrolet doesn't destroy Ford and Dodge both on ALL fronts, Mark will have failed period. Likewise, Chevrolet. And therefore, Government Motors. They have some chick in charge of Chevy trucks, she better have more balls than the so called 'men' in charge of Chevrolet Trucks of the last 10-20 years. Mark is held responsible if not. We gave them far too much money for any BS excuses.

Posted by: Jewel | Dec 4, 2012 4:23:27 PM

Yes, the 900's are wavy as hell over the rear wheels. An good lord those GMT800's were rust buckets. I looked at those pics in the link and it's the same crap here. Pure rotted out junk! Ughhh.. Why did GM get so damn cheap on their metal??? And the 900's are paper thin!! It's almost worse! I'm with the majority, the GMT400's was where it ended for Chevy. After that, the looks were gone and so was the durability/quality both inside and out. All so GM could save a buck. It's so sad for me to watch Chevy sink like the Titanic. They did it to themselves though. I still love their old stuff.

Posted by: TruckinManPete | Dec 4, 2012 4:40:20 PM

Well lets just state the facts. The chevy silverado and gmc Sierra are 5 years old. Their interiors are indeed lacking the competition but yet and still dodge still can't take second place! That says a lot about rams guts and glory! Ram is nothing but a joke! Nobody wants a 4x4 dodge elcamino! These chevy truck will sales! And the 2014 gm trucks will kick ass!

Posted by: J crews | Dec 4, 2012 4:49:50 PM

GM you simply dropped the ball by allowing Ford to get so far ahead with two, 300+ hp v6 engines, starting with the 2011 models !!!

Posted by: Marty | Dec 4, 2012 5:21:55 PM

Who let all the 6th grade girls comment on here? GM is over building because 80% of there line up will be new or updated/refreshed over the next 18 months. That means they need time too retool plantes. GM did not expect Ford or Ram to do as much in incentives on thier trucks which won't last long as Ford and Ram set up their 2013 models. Half of these comment looks like the work of three people reposting crap on different names LOL!!

Posted by: johnny doe | Dec 4, 2012 6:01:34 PM