Will GM's Pickup Strategy Continue to Pay Off?

2014-Chevrolet-Silverado-Action front II

Apparently most of the 2014 Chevrolet Silverado and GMC Sierra 1500 critics who panned the new half-tons' conservative design strategy deserve to eat some crow. According to Automotive News, the fact that GM's twin pickup trucks have lost marketshare should not be the key to assessing the success or failure of the new pickups. With transaction prices of the pickups at $5,000 more per vehicle than last year, these two trucks have played a major role in providing the new GM with solid profits.

But some dealers are worried that the drop in marketshare and GM's reluctance to put more incentives on the hoods of the trucks means some customers will turn to a competitive dealer, especially when those competitors offer segment-exclusive technology and cool features the GM twins lack. The article speculates that the next generation of GM 1500s could make use of more lightweight materials, offer eight- and 10-speed transmissions and more fuel-efficient powertrains. Some of the more aggressive federal fuel economy regulations don't go into effect until the 2019 model year, right about the time the next-generation Chevy Silverado and GMC Sierra are due.

Whether GM is willing to concede any more marketshare (remember, Ram outsold Chevrolet in March, 2014 for the first time) or is able to pick up a few percentage points with more incentives remains to be seen. GM seems to have done pretty well designing and producing more $40,000-plus trucks for customers, but to stay in the black it will need to address its market-share slip soon, and that could mean better pricing and bigger deals. Summer and fall pricing will be key.

Manufacturer image

 

Comments

Have had a 2014 Chevy for a couple of weeks now. Traded a 2010 Dodge Ram for it and prior to that had a 2006 F150.

Bad:

-Doesn't offer a lot of the technical innovation Ford and Dodge are.
-The radio/display. God, what a distraction. The new Fords and Dodges may be as bad, so, don't know.
-Less room in the back seat (extended cab) than either Ford or Dodge.
-Ergonomics are a bit quirky but no worse than the Dodge. Ford is awesome here.

Good:

-Ghostly quiet.
-Goes like stink.
-Pretty good on gas.
-Feels solid.

This pickup has a distinct personality. It doesn't like city driving or tooling around so much. It'll do it but it's not happy about it. It likes to get out on the highway and go. That's where it's happy. Ride and drive get better the harder you push it. First Chevy I've had in 15 or so years (Dodge or Ford in between) so there's that. Chevy dealers are wheeling and dealing to move them so that's how I came about mine.

Have had a 2014 Chevy for a couple of weeks now. Traded a 2010 Dodge Ram for it and prior to that had a 2006 F150.

Bad:

-Doesn't offer a lot of the technical innovation Ford and Dodge are.
-The radio/display. God, what a distraction. The new Fords and Dodges may be as bad, so, don't know.
-Less room in the back seat (extended cab) than either Ford or Dodge.
-Ergonomics are a bit quirky but no worse than the Dodge. Ford is awesome here.

Good:

-Ghostly quiet.
-Goes like stink.
-Pretty good on gas.
-Feels solid.

This pickup has a distinct personality. It doesn't like city driving or tooling around so much. It'll do it but it's not happy about it. It likes to get out on the highway and go. That's where it's happy. Ride and drive get better the harder you push it. First Chevy I've had in 15 or so years (Dodge or Ford in between) so there's that. Chevy dealers are wheeling and dealing to move them so that's how I came about mine.

they had to increase incentives to outsell Ram in April, because they are piling up, like a Nascar Talladaga wreck.

Meanwhile, Ram lessoned incentives, because they are selling what they build.

They also brought out their new face/old truck HDs, so the few thousands that wanted them cause they "new" bought up.

Wow, $8,000 is not enough off on a double cab truck, that they give you free maintanance on for two years, and that's just an "All Star truck."

The new look must be catching on because the 2015 GMC HD outsold all the competition in the month of April. And also check out the sales for the new SUVS, they cannot build them fast enough to meet demand.



The comments to this entry are closed.