As the 2013 inventory clears out, General Motors’ dealers are reporting so-far paltry sales for the 2014 Chevrolet Silverado and GMC Sierra full size pickups after facing competitive pricing from aging Ford and Ram pickups. In the case of September 2013, the Silverado was down 10.8 percent, while the Sierra nameplate declined 1.5 percent.
According to the Automotive News, meager incentives for the new pickup are driving customers away from Chevy and GMC dealers and towards the more affordable Ram and F150. Looking to dwindle their 2013 stock to make way for new models, Ford and Ram are offering up to $9,000 of incentives, as what seems to be a sense of gratification. However, this overlap shouldn’t last for much longer.
Dealers and analysts say that the pricing disadvantage of the new Silverado and Sierra should only be temporary, as Fords and Rams incentives on their trucks could fade as their 2013 inventory depletes. However dealers are worried that the situation could prevent them from capitalizing on the launch buzz of the new pickups.
GM executives are aware of the challenges of bringing out a new generation of pickups just as the competition is looking to sell off last year’s models. Both Ford’s F-Series and Ram posted a sales increase in September, while sales of GM’s pickups fell 8 percent.
Still, executives say they would rather hold the current pricing on the Silverado and Sierra than lower it to chase market share. GM is advising dealers to sell the truck on its merits, such as best-in-class fuel economy, power, and tow ratings, as discounts to match the competitions are not available.
“You don’t ever want to let the oldest trucks in the market dictate strategy for the newest and best truck in the market,” GM spokesman Jim Cain told Automotive News.
GM did offer $1,000 in customer cash on the 2014 Silverado and an additional $500 on higher priced models at the beginning of October, but it was quickly offset a week later when the company announced it would raise the sticker price on 2014 models by $1,500.