GM Ramps Up Pickup Production
Some will say GM's decision to ramp up production at its full-size pickup plants was inevitable since both Ford and Ram have been enjoying strong monthly sales, while the Chevrolet Silverado and GMC Sierra have been struggling.
According to Automotive News (subscription required), GM dealers want more pickup trucks because they are bringing some of the highest average transaction prices they've ever seen despite the fact GM has not redesigned the trucks in three years.
GM offered bigger incentives on its pickups during the first part of July with mixed results, but we suspect there will be similar incentive deals while the production pipeline fills.
According to Automotive News, GM North America President Alan Batey said the second half of the year is usually quite strong, possibly accounting for as much as 60 percent of yearly sales. With more production and the right incentives, GM hopes both the Silverado and Sierra will make up some of their lost market share by year's end.
Cars.com photos by Evan Sears
Comments
Excuse me?" Not redesigned the trucks in three years"? No one noticed the refresh in 2016 with new exterior upgrades on both Silverado and Sierra? Addition of Car Play? Different option packages? Sorry, I don't buy the "not redsesigned" argument. I would say however, that a shortage or 6.2 L v8's could be a factor, or that 6.2 v8 isn't offered on lower trim levels, or that you can't get trailer towing mirrors on a Z71 truck, or that you don't get heated rear seats on any trim level, even Denali, though its offered on Yukon/Tahoe. Packaging decisions have not necessarily been GM's strong suit.
GM has to fix the shake issue asap.
Local GM dealers has the lowest inventory on their lots that I have seen in awhile. Someone is buying those GMs. Lots of Black DENALI around town. Damn! Those are great looking trucks
@bat
Speaking of trailer mirrors, I'd like to see them optional on Tahoes and Suburbans and Yukons.
In my opinion, these are the best looking GM trucks, the only ones standard with the LED "Megatron" eyes.
When I was shopping I didn't see these supposed "deals" GM had going on. Oh, I see adds on tv and on sites claiming such, but in the real world they don't come close. RAM offers the best deals currently, Ford is willing to deal, GM is not.
This decisions sucks and will fail.
Inventory is NEVER an asset. It is always an expense.
I don't care if you make your living selling peanut butter, yoga pants or pickup trucks--If you want to add expense to your business, you can add more inventory if you like, but you and your customers will pay more for it.
GM may believe that there is untapped demand for their pickups--if that's true they will know by the end of the year. If not, there will be some GREAT deals on the lots in January.
Nobody has a crystal ball, but most economists are aware of the lousy GDP figures in 2016 by now, and nobody is predicting some huge bump in business growth. Consumer confidence is in the crapper and GM is going to be hitting some stiff headwinds with this idea.
Not here! It's all Rams and f150s...a few newer Silverado's no new Titan a few tundras and gmc that's about it.
http://www.autonews.com/article/20160727/OEM01/160729857/gm-aiming-for-strong-2016-finish-to-hike-truck-output
The Chevy and GM are much better looking trucks but news of the "Chevy Shake" issue has at least scared me away to never consider owning one.
Still on the fence with the F-150 waiting for higher mileage problems to come out.
LOVE the Ram! you can feel the power driving one, the interior is comfortable but I HATE that gear selector dial on the dash!
@bat
I have said the same thing about GM for years and it's the single biggest reason why I wouldn't own one. I hate their trim levels and packages. They are the worst of any pickup maker. Imagine if you could only get the 5.7L iForce on 1794 or platinum, 5.7L Hemi on laramie limited or laramie longhorn, 3.5L Ecoboost on King Ranch or above. Most people are relegated to the much improved 5.3L but it ain't no 6.2L and you have to shell out more money to get an 8-speed.
The Chevy and GM are much better looking trucks but news of the "Chevy Shake" issue has at least scared me away to never consider owning one.
Posted by: Tom#3 | Jul 30, 2016 1:03:08 PM
Go test drive a new GM full size twin. Drive it at highway speeds and pay attention to any vibrations. If no vibrations and you like the truck, buy it. The so called vibrations is being caused by the tire slipping on the wheel, hence the wheel becomes imbalance. If the unit has factory installed 17 - 20 inch diameter wheels, your unlikely to ever have a tire wheel balance issue. If however, the unit has 22 inch wheels, you may experience the Vibration. I know several people ( 1 with a F-150) who have gone aftermarket for 22 - 24 inch wheels and have continual wheel vibrations. The tires are slipping on the wheels. Apparently there is a product called Dynabeads that tire installers use to correct vibration issues. I have no experience with this product so I can't comment on if it is effective. I personally own a 2015 Silverado with factory 20" wheels and no vibrations with over 12,000 miles on it.
papajim,
This is not an expense for GM. Look at it this way, buying a home is an investment similar to GM building (buying) trucks. Fixing the plumbing or painting the house early is an expense, again similar to putting gas or tires on a truck.
These are an investment for GM, if not GM would not be doing this.
Come on PUTC. There is another site posting first drives of the 17 Super Duty and we have to read about GM fantasies?
GM needs t improve the color choices. Ford and Ram have better reds and brown color's. I would buy a Colorado or Canyon today if they had a color I liked. The Ford Dark Red is the bomb....
@willy
You're mistaken. Look it up.
GM's story cracks me up.
It's the last weekend in July and GM dealers want more 2016 Silverados and Sierras on their lots like they want a hole in the head.
The facts are this is a slow year for dealers and it was just announced the economy was grew 1.2%, estimates were for 2.5%! They also revised the growth for the first quater. It is now just 8/10 of 1%. The original was 1.1%.
Any business that has to carry retail inventory wants to be lean right now. Ford had the smarts to shutdown production in April and give the dealers what they really want. A leaner inventory.
Lmao ramping up production of a product in the sales decline. I guess they are gonna start giving them away.
HEMI V8
You drive a Ram, you really shouldn't criticize other brands.
Tire slipping on the wheel. Ha, that's a good one! LMFAO
Ford had the smarts to shutdown production in April and give the dealers what they really want. A leaner inventory.
Posted by: Gregory Stevens | Jul 30, 2016 6:16:05 PM
Uh are you on drugs? Ford has 105 day inventory. GM has an 83 day inventory. Ford had been throwing cars and trucks away "hint their .5 billion drop in profits" yet growth in sales numbers.
Yep you gotta watch them tires slippin on the wheel. Only on gm's.
Whole lot of shaking going on at GM.
@GM once great (long,long,time ago,maybe). Tires slipping on the wheels?? Really? Thats way,way too funny, OMG!
HEMI V8
You drive a Ram, you really shouldn't criticize other brands.
Posted by: Cool | Jul 30, 2016 10:12:58 PM
Proud of it.
https://www.youtube.com/watch?v=yMzZsVT93Ek
Pleasure to drive my RAM.
https://www.youtube.com/watch?v=HxrbRRC2DLw
May be the reason GM is ramping up is because Ford us ramping down?
I’ve said for the last 15 years that Ford was going to hurt their self by over protecting The F-150.
Fords all aluminum F-150 has not been the raging success they would like everyone to believe.
Automotive News= Fords warning jolts the industry.
For those who are skeptical of the tires slipping on the rim comments I made earlier.
http://forums.corral.net/forums/road-racing-auto-x/1249769-tires-slipping-rim-who-knew.html#/enter
http://forums.viperclub.org/threads/587873-Stock-wheel-amp-tire.-Tire-slipping-on-rim-!
https://m.reddit.com/r/cars/comments/3g47h1/what_stops_tyres_spinning_on_the_rim/
Papa Jim and Gregory Stevens are correct.
@cool
Anyone posting 2017 super duty driving impressions today is doing it ahead of the press embargo lift which happens tomorrow. I drove one two weeks ago and my lips are sealed until tomorrow.
I don't understand the logic of "We can't sell the ones we have without giving back 15% so we are going to fix that by making more of the same stuff". Unless GM makes their trucks more attractive they are going to have to incease incentives on all of them, reatly reducing their profit margins. Competitors will probably respond with more discounts as well and hang on to their market share. Consumers will rejoice but share holders will go into cardiac arrest. Whoever made this call failed business 101. GM needs to focus on making their trucks worth list price in the eyes of the buyers before making more.
Vibration issues are being experienced by all the manufactures. Personally, I believe FORD is responsible for making the attention focused on GM when they too are experiencing the same issues. Tires are slipping on FORD and FIAT wheels also, they are not except.
https://www.fordf150.net/forums/viewtopic.php?t=119087#p772919
http://www.ramforum.com/f41/2015_ram_1500_4x4_rear_end_vibration-72700/
GM needs to focus on making their trucks worth list price in the eyes of the buyers before making more.
@Walt
1. Please note, nobody is selling their trucks for list price.
2. I mostly agree with your comment about the silly idea that GM will increase production during a time when overall consumer sentiment is pretty soft.
That said, please remember that GM is going to do what its dealers ask them to do. If that means adding inventory to dealer lots, they're more than happy to do that.
At this point, GM can do whatever they want, the rest of the industry could care less about what GM is doing.
Their marketing department is not in touch with what customers want. The current pickups are the trucks that GM needed to release back in 2007.
The reason they have still been seeing high transaction prices despite slumping sales is simply because fanboys will always pay a premium.
Yeah sure..ramping up production won't mean more sales....you can build a lot of those and people with good sense still won't come
Man FCA nearly beat Ford in profits this quarter, that is super hilarious LOL!!!!!
Wrong again, johnny. FCA has a long way to go.
2nd quarter profits:
Ford: $2 billion
FCA: $352 million
All that happened is the 8 speed isn't available at all in any trims on any lots. its all over priced 6 speeds on those lots with 5.3. the 8 speed is what makes the 5.3 good. it revs quick and shifts are positive and force you forward. the 6 speed makes it feel like a cadi.
They will ramp up production with more premium transmissions over more trim levels. I went to the dealer for a free service and looked at trucks for an hour. every truck that I thought had the same setup as mine didn't and the price was 3k more retail for less premium equipment. Made no sense what so ever. I don't doubt they are losing sales based just on that. I wouldn't buy one for over 50k with a 6 speed! NO WAY! Id be buying a ram with 8 speed or a ford with the 5.0 3.73 rears and some better options for less price. I can see why people are looking to other brands because whats on the lot is only for the low info crowd!
Walt
Fords major stock holders went into cardiac arrest at their last shareholders meeting and Bill Ford had to step in and defend Mark Fields. I am sure GM stock holders will be the same.
No checks from Ford. Just cashed a big one from GM though.
Will I get fries with that shake?
Only to be sold highly discounted.
A sale in Northwest Arkansas had crew cab GMCs going for 25% off MSRP.
Hey if you really want a great deal, wait till about October November!
I looked at the Colorado and Canyon and it's impossible to buy those how you want them without getting so many other various options with it. Who would have thought I'd have to pay for the driver alert package, just to get a trailer brake controller?
And I'm not so crazy about a diesel that needs its timing belt changed at a hundred and fifty thousand miles.
looks like GM will be asking form ore tax payer money to bail them out every shortly
Come on Mark,
Another cherry picked article?
You fail to mention the reason for it is they only have 83 days on the supply where Ford is holding 105.
You also fail to mention the fact that the retail sales have driven GM to a 31% increase in operating profit from last year. (Cutting back on fleet sales)
How come you didn't re-post the article about Fords profits down 9%? Or the fact that they are resorting to heavy fleet sales to make up for lack of retail sales? Which by the way a lot of analysts look at as a major sign of weakness when a company is dumping on the fleet market to bump up sales.
I wonder why I have to go to the other sites to read these articles?
I'm starting to understand why a lot of people that read this site think it has major issues with brand bias...
Looks like Ford will be asking for tax payer money to bail them out very shortly after half a billion drop in profits.
Per Quarter ended July 30. - operating margin:
GM 4.97%
Ford 6.69%
Public info peeps -people assume fleet sales are bad but no one here has a clue as to what ford makes in fleet sales nor does anyone understand how the affect the contribution margin.
Bottom line they are both in a bit of trouble GM a bit worse on op margin.
By the way inventory is an asset carried on the balance sheet in case anyone wanted to know. Bonus question - why would GM want to ramp up production in the face of economic headwinds??
See Ford in the bail out line soon.
https://ycharts.com/companies/F/profit_margin
https://ycharts.com/companies/GM/profit_margin
Bottom line they are both in a bit of trouble GM a bit worse on op margin. By the way inventory is an asset carried on the balance sheet in case anyone wanted to know.
Bonus question - why would GM want to ramp up production in the face of economic headwinds??
Posted by: Grnzel1 | Aug 1, 2016 3:08:55 PM
I believe shaky GOVT motors top management's goal is reverse their recent decline in sales of full size trucks no matter what circumstances including previewed US economic headwinds. So certainly we will see more massive discounts & great news for consumers...if you like shaky square wheel-well trucks :-)
ford will just receive more government money to build there ecoturds, it just won't be public knowledge as usual.
GM is definitely making a mistake by not fixing the "shake" first, before ramping the production. From what I saw and read, some units started shaking after some mileage, so it's not sure that if the unit doesn't shake new it won't be shaking after.
Not fixing that asap is a big mistake. Increasing the production will make it worse. GM has to put quality first, that's how Toyota became #1. Ideally the truck should have been well designed, solving problems later is very expensive in terms of cost and bad publicity.
Ford, Toyota and RAM will spread the news in no time, RAM will soon surpass Chevy Silverado as the #2. No matter how cheap, who's going to buy a truck that may shake?
It will be really really sad when the USA GOV will have to bail out Ford with all their import none USA built junk.
http://www.american.edu/kogod/autoindex/2015.cfm
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