GM Tells Dealers More Trucks Are Coming

Chevy Silverado 53 Ext II

During 2016 National Automobile Dealers Association meetings, GM dealers were told there full-size SUV and pickup truck production will increase, thereby growing market share in the coming year.

According to Automotive News, Chevrolet U.S. Vice President Brian Sweeney confirmed that both the Silverado and Colorado pickups will get increased production to help dealers who have been dealing with short supplies.

Silverado and GMC Sierra 1500 and heavy-duty pickups are produced in plants in Indiana, Michigan and Mexico; the Chevy Colorado, GMC Canyon and G-Series vans are produced in Missouri; and the Chevy Suburban and Tahoe are built in Texas.

GM did not provide details about how it plans to squeeze out more vehicles or what it will cost to increase output at these plants, most of which have been running efficiently at or near full capacity. GM did not provide numbers or construction plans.

Demand for the full-size SUVs and pickups continues to be strong, and Chevy, GMC and Buick sales figures are likely to continue to grow their market-share percentage as long as fuel prices stay relatively low and the economy remains stable.

All of the pickup truck manufacturers are benefiting from strong pickup truck sales but none of them have announced the construction of new production plants.

Cars.com photo by Evan Sears

 

 

Comments

Still waiting to see a Colorado/Canyon diesel on a lot anywhere in the state of South Carolina. If GM wants to sell them then maybe they need to build more! Just a thought.

The US economy is so soft presently that the companies would be taking on a huge risk building new infrastructure. Even additions to existing facilities is scary from a P/L standpoint.

The recent comments by the Federal Reserve chairman suggest that the smart bankers on their board are so reluctant about the economy's growth prospects that they are afraid to increase interest rates even slightly over the next 12 mos. They basically walked-back the more optimistic tone of their comments from 3 mos. ago.

Good luck to GM. I'm not as optimistic as they are.

Agree with papa on this one.....

Bye bye Ford, welcome to your new spot 2nd place!

They better fix "The Shake" before they make more.

With extremely high rebates, they will sell.

They barely outsold Ram, and GM has had $7500 off a crew cab since before March.

I get a great laugh every time the GMC commercial airs, the one with Eminence Front on it. (a song by The Who) Great song, too bad not one GM person thought "what is this song about, what are the words?"

It's a put on, something covered up.

"The shares crash, hopes are dashed, people forget.Forget they're hiding.

Behind an Eminence front-it's a put on, .....

I think it's humorous. Dealers here have tons of them on the lots with lots of cash on the hood and/or attractive financing. Market seems pretty well stocked to flooded to me. I think this is whats huting ford the most. Everybody is shopping for the best deal. I guess that's one strategy to take over the market.

We'll see how it all shakes out

I agree with papjim and bugspray, the local lots or full of Silverado's and they are offering up to $10,000 off. Cannot find a Colorado on a lot gas or diesel, but yet my buddies who work at the plant are working 6-12 hr days every week...plus got a $7,000 bonus at the end of the year.

will the 2017 HD trucks be coming this year

Toyota Tacoma will still be number #1 in class!

@dave 10 grand off is the norm on any new full size truck. If you don't get at least 20k off you paid go much.

At least 10k off is what I meant

It sounds like a Trump sales pitch:
"We're gonna make SOOOOOO many more trucks next year! We're gonna be the greatest truck maker EVER, of all TIME! We're gonna be SOOOO huge, wait till you see how big we'll be!"
And yet, no plans, numbers, projections, or even a response to the fact that they were not in short supply this year (proven by the huge incentives they are offering).

@johnny Dil, thank you for finally admitting Ford is number 1!

Prices are too high and rebates need to get better. Just because someone out west is getting $10,000 off doesn't mean people in the southeast are getting that. Plus most of those rebates you have to qualify for by doing all sorts of little things like financing with Ally, being a vet, trading in a GM and have pink hair. Dealers around here will not take $10,000 off a truck, won't happen. the guy that said get $20k off wouldn't ever buy a truck around here becaus dealers would laugh him out the door. You MIGHT can get $12000 on a 2015 leftover right now and I bet you'd have to do some arm twisting to get that.

Wow, great decision GM, now they'll build too many that people will not buy. Bad Move, as always though.

@Frank, Who would have thunk it You do not like GM trucks. You don't like GM's plans for more trucks. Great. More trucks for the rest of us!

http://cdn2.hubspot.net/hub/53/file-418482839-png/Blog-Related_Images/frank-costanza-festivus.png

What bunch of crap. First quarter sales are up less then 2%. They've sold barely 15000 Silverados then Rams for the year. Sierra sales are strong because Sierra buyers want a premium truck and don't cross shop at the Chevy dealer. Ram will be close or surpass Silverado sales if the percentages stay like they are unless GM floods the market with huge rebates to keep their normal 2nd place spot.
Can you say Chevy #3.

The writing is on the wall. Chevy dealers are griping about poor sales. They want better product. GM's solution is to flood the market with old product and make sales the old fashioned way, using incentives.

"GM did not provide details about how it plans to squeeze out more vehicles or what it will cost to increase output at these plants, most of which have been running efficiently... "

I sure am glad that they were running "efficiently". God only knows what GM might produce if they were running inefficiently (^_^)...

=============

The more trucks GM builds the cheaper they can sell them.

With "cheap" gas, record demand a decent economy that's not shocking at all.

Everyone is ramping up truck production. To meet dramatic increases in demand.

What are the big 3 minus 1 doing to prepare for when gas isn't cheap, when the economy cools/slows/dives and demand slackens for trucks and once again they have to figure out how to make the small/midsize car a profitable sale item as opposed to a crutch that allows them to build/sell trucks under CAFE?

This is something Toy, Nis, and Honda do VERY well and the Big 3 minus 1 have never come close to mastering. Ford tinkers with it but alas the fast easy profit margins from the trucks/big expensive vehicles is too sweet to pass on.

There are always bail outs blaming the economy and gov standards instead of taking responsibility for decades of bad business decisions and consistently poor performance in these markets.

Clint, NMGON, TWIOTW, COOL: Guys, read the whole article.

Excerpts below from the article:

- SUV and pickup truck production will increase, thereby growing market share in the coming year.

- the Silverado and Colorado pickups will get increased production to help dealers who have been dealing with short supplies.

.................................

What does that tell you ? Sounds like trouble for the # 2 truck manufacturer. I won't say it, but you know who you are.

@clint

I agree Ford with tbe exception of Mustang doesn't build exciting cars. Hopefully the Focus RS and the coming Fusion Sport with the F150's 2.7 Ecoboost and 400 HP Lincoln's will change that. GM have Corvette , Camaro but nothing else. Cadillac to costly. FCA well they are getting out of the small, midsize market.

I seriously doubt that they aren't producing enough pickups. They need to build more 6.2's. That is the only real shortage.

In my area only the Colorado-Canyon are in short supply and the Silverado and GM they are over stocked and can't give them away !

I love these Ram people... but Ram almost sold as many trucks as Chev.... meanwhile GMC and the mid sizes are selling... then all the other markets and vehicles they push.

Sergio was on his hands and knees begging to merge with GM...grab a clue

Fiat just announced they may discontinue the plagued dart and 200... they are searching to rebrand small cars.... wasn't the highlight of the merger to be Fiat's expertise in small cars?

oh one thing happened right, fiat , Chrysler ,Ram and jeep made perfect bedfellows because the merger put all the most unreliable vehicles in one basket.

Ford has nothing to worry about here, this is GM. NEXT!

Ford has nothing to worry about here, this is GM. NEXT!

Ford has nothing to worry about here, this is GM. NEXT!

Nitro Ford isn't #1 GM is 900,000 some trucks at the end of 2015 compare to 700,000 Ford. So far this years total is 210,293 GM compare to 186,121 Ford.

Keep an eye on housing starts, housing prices and home-improvement stocks (Home Depot and Lowes).

As long as consumers are buying new homes, and refurbing old ones, pickups will sell.

The question isn't whether the economy is good in the short term. Think long term.

If you plan to build a new truck plant, or add capacity to an existing facility, you better be confident in the economic prospects for another decade or two.

Lou,
I strongly disagree with your assessment.

There is much evidence indicating room to improve 'C' twin numbers from GM.

To the general PUTC audience;
The author of this article overlooked the changes occurring at Wentzville, increasing 'C' twin production.

Is this good journalism?

Yep, old GM coming back. Huge discounts and shrinking profit margins. the Govt. should just start a escrow fund now to bail them and FIAT out again.

GovMSRGREAT

You are the master spin dr.

NO US/Formerly owned US manufacturer has come close to foreign competition in the small and mid sized car market. The big 3 minus 1 sell trucks and SUVs for a profit and only sell cars in order to meet CAFE to sell trucks and SUVs. Their cars rank and hold up poorly against Toy,Nis, and Hon who sell their small/midsized cars for PROFIT. Hell Honda doesn't even really make a truck and only occasionally flirts with a pretend one.

Ford does the least bad job of this of the 3 minus 1. Fiat does the worst now... of all time so far GMs Cobalt is the king of crap. Its not isolated its been going on consistently and its horrible. Vega, Pinto, Omni, Chevette, Citation, Neon, Escort, Cobalt, Cruz, Focus, 200, Celebrity, Ion... all garbage compared to Sentra, Civic, and Corolla who don't need a name change every 4 to 7 years to ask their market for another chance because they don't need another chance.

Toy and Honda build NOTHING exciting. Yet they are profitable...

When Ford, GM and Fiat DONT need to sell full size trucks or can take a loss on fullsize trucks like when demand falls, and the economy has an issue which ALWAYS happens sooner or later. When that happens and GM and Fiat don't go under and begging for free money, when those 3 stupid companies realize small cars sell in good times and bad and trucks are the icing on the cake not the cake itself. Then they have learned, grown, progressed.

They aren't there. Ford is the furthest along of them but its still miles behind its foreign compeitors in it.

The BEST never rest!

Frustrated...I've had a 16 Sierra 1500 double cab with the 6.2L on order since February, was just informed today that the truck will not be built with this engine and that it's built out for the year. Does that sound right?
Forget inventory there is nothing on the ground that I can find in this option.

Donlen is showing a supplier issue with the 6.2L in all cabs for 2016 Silverado, Sierra 1500s and 2500s. They start taking orders for the 2017 1500s on 4/14. Good luck with that. I'm waiting for a 2018 Ford.

I agree with what has been commented before, GM needs to fix the "chevy shake" on the Silverado's before increasing production. To date, GM has not determined and/or remedied the many trucks with the Chevy Shake.



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