When General Motors overhauls its full-size trucks for the 2014 model year, the new models will undeniably bring smiles to the faces of truck lovers across the country. But as truck enthusiasts are grinning form ear to ear, GM dealers may not be as fortuitous, as they will need to decide whether to stockpile the last shipments of the GMT900 trucks (before the combined 29 weeks of downtime for GM’s plants kicks in) or to turn them down in waiting for the new K2XX unit. The GMT900s aren’t easy to sell as it is, given the fact they’re the oldest in the industry (among trucks that matter) — having been around since 2006.
If inventories of 2013 Chevy Silverado and 2013 GMC Sierra trucks run dry, dealerships risk losing sales — but they also don’t what to be stuck with a bunch of unsellable last-gen models when the new trucks come to market, either. If you’re a dealer reading this, what is your store planning on doing? Sound off in the comments below.
Comments
You stock whatever is going to provide the most $$$ when it’s time to markdown… This is not an end of the world dilemma any inventory manager should have the statistical data to know what will work the best… My guess trucks that are middle of the road as far as features mid 20’s to low 30’s. Then sell the high end models for a premium, hey if you want this you will have to pay for it or wait for 2014 models. Stock a few of these and be done with it…
A no-brainer, really. I’m not a dealer or a purchasing agent, but what to do is cut your regular order in half. Sure, there is a slight risk of shortage, but that’ll be cut in half or more by ordering the currently available models. The ensuing gap would be filled in by pre-orders and specials on the new upcoming truck.
When a new truck comes out, dealers always sell a few at special prices to get them on the road. A friend of mine got his Silverado at below cost by preordering one a couple months before introduction. The dealer said they wanted some out on the road, and his was used in a long daily freeway commute. This is good advertising – the dealer pastes license plate and tailgate sticker ads onboard.
If there is no shortage, and GMT-900s are on the lot, they’re easy to markdown and/or sell to fleets. Remember, fullsized trucks have been dealers and domestic manufacturer’s bread-and-butter for decades.
The one wrench in the works ( lol – you knew you’d get this from me, Babersher ) is rising fuel prices. One better hope the new truck is far more fuel efficient than the outgoing one.
Surorisingly negative article. Model changeovers have had to be managed for 100 years. They’ll build plenty to cover any shut down and guess what the closure timeframe will change over the next year.
At The pace they are selling at now, hell we will have enough 2012’s left over for a long time!