What happens when a truck maker releases a new pickup at the same time its competitors offer huge incentives on their current models? If you look at last month's sales numbers, you'll see both of GM's pickup truck brands — the Chevy Silverado and GMC Sierra — fell when compared to last year's monthly sales numbers. Much of that, says Automotive News, is because both the Ford F-150 and Ram 1500 have significant incentives on the hoods of those trucks.
In some cases, Chevy dealers have a 170-day supply of Silverados on the lot; normally, that number is 110.
Some experts wonder how long General Motors will be able to keep from dipping into the tried-and-true strategy of heavily discounting transaction prices with incentives to increase sales and marketshare. It should be noted that GM has some of the segment's most profitable transaction prices.
Dealers, on the other hand, are confused that GM recently added customer cash to help shrink inventories and then promptly raised all the sticker prices on most 2014 half-ton Silverado and Sierra models anywhere from $1,500 to $1,950. GM incentives are down 32 percent for the Silverado 1500 and 36 percent for the Sierra 1500 from September 2012, according to Automotive News.