With consumer confidence on the rise and the U.S. economy seeing a moderate uplift, one would expect to see a tangible rise in the demand of pickup trucks, especially after all the needed rebuilding following the Sandy superstore. Such a rise took place for Ford and Ram, but not for General Motors — which experienced a drop in November full-size truck sales.
While Ford enjoyed an 18 percent rise in truck sales to 56,299 units last month — its best since 2005 — sales of Ram trucks rose 23 percent to 25,074 units year-over-year — its best since 2007. Then there was GM — with truck sales down an overall 8 percent in November. Sales of the Chevy Silverado were down 10 percent to 30,674 units — increasing inventory to a GM-Estimated 139-day supply; sales of the GMC Sierra experienced less of a drop than those of its Bow Tie-wearing brother — being down 2 percent to 11,726.
In deciding where to lay blame as it relates to the sales slump of GM’s most profitable line of vehicles, we’d point to two dominating factors: uncompetitive product and a lack of incentives.
When it comes to competition, it’s no secret that GM’s line of full-size trucks have not received any major changes in their time on the market. After seven years without an overhaul, one is long overdue — and it’s coming later this month in the form of the all-new 2014 Chevy Silverado and GMC Sierra. The new models are expected to continue to sell to those loyal to GM, but also have the ability to win back market share lost to the newer Ford F-150 and Ram 1500.
Lack Of Incentives
According to GM, it offered far fewer incentives on its trucks last month than did its competitors. We’re guessing that GM made the decision in an effort to follow the new corporate strategy of increasing its profitability. The strategy, if indeed applicable to last month’s truck deals, cost GM real sales.
But not all is doom and gloom: with consumer confidence on the rise, construction on the upswing, and new models on their way (likely leading to discounts on 2013 models), we can’t imagine that sales won’t recover over the next several months.
We’ll be here to tell you how it all plays out. In the meantime, check out more GM News.