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.
Uncompetitive Vehicles
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.
Comments
wouldn’t the reason also be that the technology is lacking for both trucks since both F150 and Ram have some infotainment in addition to that Ram is adding 8 speed on their trucks?
Vic — being uncompetitive covers all of those items… the trucks are simply not up to par to the competition today.
Alex, I know this article is not the proper place to post this reply.
I have created this page in order to appeal to GM to return Buick to Middle East which was phased out in 1996. I’m one of the people who love Buick, and wish to own one and see them on the region Roads.. I hope all Buick & GM fans like the page
http://www.facebook.com/BuickArabia
There’s lot of reasons . Personally, the trucks — especially Chevy — lack a stunning visual appeal compared to their competition. It starts with a weak exterior color palate — no two tones or dress up packages to speak of (Harley Davidson or many Dodge packages, some of which may be regional) to lack of distinctive interiors.
The GMC line up is better but doesn’t have the distribution. I would emphasize the GMC line up — especially the Denali line up — and price and promote them aggressively.
I personally know a guy who was loyal to GM for quite some time, buying a new truck every other year, recently purchased a Ram due to lack of options on fully loaded LTZ, said he got a better deal with longhorn and interior trim and options package that you can’t get in the Silverado. Another complain that I hear is that the basic Silverado doesn’t have as much options as the basic Ram, and Ram comes 4-5k cheaper (3500 diesel crewcab dually). I beg a question, how serious is GM about its trucks?
The Dodge has that cool coil spring suspension and the F1fitty has that cool tailgate spoiler. The Chevy looks like it’s from 1997 and it has that cheap looking “add on” tailgate spoiler. It also has big ugly wheel well openings. It just looks old.
Nun kommt Ihr euch so vor wie wir wenn wir eure Seiten lesen und nicht alles verstehen weil wir keine amerikaner sind.
Die Sprachen bei GM anbieten das ist ein Teil fuer die Zukunft.
Also, some customers are waiting for the redesigned model.
If its too easy since the text for translation no one can vote or comment, that’s the proof that I have quite in terms foreign languages.
Here is another couple of BIG reasons. Chevrolet is pushing the Saturn 1 price crap. Suggesting that the factory discount on 1/2 tons was the best price. Its on the “All Star” seasonal package. The GMC adds were dangerously similar. I have also noticed that many of the Chevy car adds are promoting a 1 price and the local Chevy dealers are trying to keep “that” price. Its’ all BS ! ! Newspaper adds showing only lease payments too. We have 1 dealer (andy mohr) showing super cheap prices on TV only on a base unit. If you freeze the screen & read it it says “the buyer must be a factory employee” ? PLUS FREIGHT ? WTF ? All these games are not helping American sales at all. I believe the dealer should make a profit, but full sticker on any lease ? And people don’t understand that a lease can destroy your credit in a blink. To many miles & HANG ON ! A lease payment of $199 for 36 months is after the $3500 down plus fees on a 10,000 per year lease ! The attempt to trick people at the time of purchase still exists. Here in the Indianapolis metro area dealers use Black Book. Black Book is printed by Hearst Publications, they print women’s’ magazines & newspapers ! They aren’t even associated to the car business except catering to dealer for their adds. I have found that simply getting on the internet we have saved thousands of dollars on EACH car or truck. 1 price only policies are a joke, look at Saturn, they never made a profit for GM since inception. I can only hope that ALL the factories step in and tell the dealerships to STOP all misleading adds, Stop using Black Book ($2to$3,000 under valued), use KBB or similar only that’s shown online STOP quoting only lease payments, STOP showing sales prices for factory employees only ! Heck there are dealers now offering “$4000 more than it’s worth” for your trade and keeping all the rebates ? Is that even legal ? When wwas the last time you saw a GM truck add with a legitimate discount on any HD gas or diesel ? ?
American Patrick all dealers use Black book or Manheim or other auction reports. Not KBB, or Edmunds or NADA which do not reflect the true market and how it is trending. It has been that way for the 35+ years that I have been selling!
I can tell you why sales were off. We had a fantastic September & October on 2012’s because the incentives were great. Dealers ran out of 2012’s and 2013’s did not have the incentives needed to get people into the showroom. Plus I noticed the day after the elections our showroom traffic came to a halt! Then here in Michigan on the 15th we have deer hunting for guns opening. It has been dead. December so far is not starting off real well either.
Interesting DATA:
According to TrueCar, the average price for a new vehicle in November 2012 was $30,832. That’s up about $335, or 1.1%, from November 2011.
The highest transaction prices were found at Volkswagen and Audi dealerships: $33,610. General Motors ($32,891) and Ford ($32,543) were close behind.
At the other end of the scale, we find Hyundai and Kia ($22,342). There’s a wide gap separating those two from next-to-lowest Honda and Acura ($26,897).
Why are prices heading skyward? TrueCar senior analysts Jesse Toprak says that it’s in part because consumers are opting for more high-tech bells and whistles: ” Automakers are getting better at providing all the modern conveniences consumers come to expect for more of their models, resulting in higher overall prices hence improved profitability.”
Incentives are climbing, too. As of last month, the average incentive for U.S. vehicles was $2,764. That’s up $117 (4.4%) from November 2011 and a hefty $447 (19.3%) from October of this year.
Bargain hunters will have their best luck at Nissan and Infiniti dealers, where the average incentive tops the scale at $4,273. GM dealers come in second at $3,720, relieving some of the pain of GM’s high transaction prices.
At $1,586, Hyundai and Kia have the lowest incentives — perhaps not surprising, considering their low transaction prices.
On the whole, however, the news is mostly good for consumers. TrueCar says that the ratio of incentives to transaction prices is edging upward: it hit 9.0% last month, up from 7.6% in October. Given the vast number of sales events that typically take place before the end of the calendar year, we’d expect to see that figure creep even higher before the new year.
Guys!! You know, In Middle East (Saudi Arabia, UAE, Kuwait.. etc.) GM full-size trucks’ sales is way much better than Ford F-series and Dodge Ram. All full-size pick-ups around you are either Silverado or Sierra.
But when it comes to mid-size pick-ups Toyota Hilux and Isuzu are the best two. You need a microscope to find a Colorado, although the latest one is a great vehicle.
GM should have updated the interiors in all of the trucks for the 2010 or 2011 model year. I would love to know what the costs of that would have been vs throwing money on the hood to make them sell through 13.
I am not a Ford fan, but they did the right thing with bringing the updated F150 in 2009 & then the new motors in 2011. People that trade frequently will buy their brand for the substantial updates instead of shopping elsewhere.
They should have been all new for 2011 BUT a little thing called bankruptcy got in the way.
Thanck you Alex for All And good by