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GM Considering Shrink In Full-Sized Truck Production?

The General’s full-sized truck inventory has reached 275,000, enough to supply the market for 111 days. Couple the surplus with gas prices that are starving families, and the idea of slowing down the production rate of the company’s full sized truck line might not seem like such a bad idea.

“We’re going to do something about it, but we haven’t made those calls yet,” said GM North American president Mark Reuss during a phone interview with Automotive News.

To note, YTD deliveries of the General’s trucks exceed what was observed this time last year, despite outrageous fuel costs. So while it isn’t a bad plan thin out the overstock of trucks, we may not see a significant drop in demand at all by the end of the year.

Source: Automotive News

Former staff.

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Comments

  1. Counter point to pulling forward trucks: Gm would likely gain market share if they introduced a game changer product. If the truck is a true game changer it would continue to take market share in a lower gas price environment. Investments in engineering and Gen V V-8 are complete. The logic to not pull them forward in a high gas price environment is a symptom of the logic that constantly cripples GM. If you have a game changer you want to change the game as quickly as possible to gobble up as much market share as you can be the competition copies and catches up. If your product is marginally better it probably would be better to delay investments because you will not gain enough market share to pay out the investment. Maybe the General is tell us the truck is just a marginal upgrade (10% more power, 10% better fuel economy and lost 100# but has a much stiffer frame). If the previous statement is true they are making the correct decision.

    Reply
  2. Edited counter point to pulling forward trucks: Gm would likely gain market share if they introduced a game changer product. If the truck is a true game changer it would continue to take market share in a lower gas price environment. Investments in engineering and Gen V V-8 are complete. The logic to not pull them forward in a high gas price environment is a symptom of the logic that constantly cripples GM. If you have a game changer you want to change the game as quickly as possible to gobble up as much market share as you can before the competition copies and catches up. If your product is marginally better it probably would be better to delay investments because you will not gain enough market share to pay out the investment. Maybe the General is telling us the truck is just a marginal upgrade (10% more power, 10% better fuel economy and lost 100# but has a much stiffer frame). If the previous statement is true they are making the correct decision to delay new trucks.

    Reply

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