Chevrolet will offer supplier pricing on light and heavy-duty Silverados throughout the month of March as part of its Truck Month event, according to Motor Trend. Additionally, Chevrolet will also offer supplier pricing on the rest of the 2014 model lineup, excluding the Corvette Stingray and SS sedan, through its Chevy Open House event.
The incentives are meant to boost sales of the redesigned Silverado pickups, which have experienced a slow launch year since they first went on sale last summer. Chevy is also looking to rid of the remaining inventory of 2014 Silverado Heavy Duty models to make way for the redesigned 2015 HD models, which are beginning to arrive on dealer lots.
During “Truck Month”, buyers can purchase a vehicle for dealer invoice pricing plus destination fees and a $150 program fee. An example provided by Chevrolet indicated a 2014 Silverado Crew Cab with the All-Star Edition package will be reduced from $37,520 to $30,828 during the promotion. The Chevy Open House promotion will provide similar discounts as those on the Silverado, or even lower.
“It’s no secret that Silverado sales are vitally important to our mutual success. Dealers everywhere want and need Truck Month to win against Ford and Ram,” a statement from Chevrolet sent to the dealers read.
General Motors has lost market share to Ford and Ram since it first put the redesigned Silverado on sale last year. According to Automotive News data, in four of the last five months, GM’s pickup truck market share fell to 33 percent from the usual 35-40 percent. An analyst with Barclays Capital described the launch earlier this week as “arguably the least successful large pickup launch over the last 15 years.”
GM will also extend the Open House event incentives to Buick and GMC models. GM has not yet specified if the Sierra pickup will be included in the Open House offers.
Comments
The All Star edition sale has been going on for at least a month. That’s still $30k for a two wheel drive p’up with a naturally aspirated V6. $30k is 4×4 Ecoboost money these days. Sorry no comparison. The only GM engine that competes with Ecoboost is the 6.2 and those are not to be had below $50k it seems, if you can even find one in the first place.
People aren’t fooled by the 4.3. Basically same mpg as 5.3. Or maybe it’s the crew cab sticker in the door that screams MADE IN MEXICO that isn’t going over well.
“Or maybe it’s the crew cab sticker in the door that screams MADE IN MEXICO that isn’t going over well.”
There’s no need to be xenophobic. The auto industry is a global affair, and you’ve had almost 40 years to come to grips with this fact, yet the xenophobia persists.
Well looks like GM will blink first here.
The only thing holding things up sales wise here is the lack of incentive. But on the other hand GM has been getting $6,000-7,000 more transaction price than last year.
The 5.3 is the equal to the ecoboost as the V6 is only to compete to the non turbo V6 in the Ford. In fact the 5.3 if I recall gets like 1 or 2 mpg more.
As for made in Mexico issues that is only for the anal idiots as most trucks come from the states and the smaller number from Mexico really are not at issue. No were the Rainier, the HHR or even the Hummers that were built on the same line.
The fact is these trucks are made to the same quality no matter what plant they are made in and the general public as a whole really don’t care.
No cheer leading here just reality.
Magirus thanks again you really have no clue in trollville.
What will the excuses be this month if sales continue to disappoint? Bad weather? Not enough discounts? These kind of price cuts, in the first year of a brand new model, when the competition is “old”, is not only unprecedented, it is an acknowledgement from GM that things are not going well. This is shaping up to be a tough year for “The General”
Scott, is Barclays trolling too when they say it’s the “least successful launch of a large pickup in 15 years”? Sales stats don’t lie but why let facts get in the way when you have an agenda, eh?
When you get a drivers license I recommend you drive the new 5.3 and then compare it to the Hemi or Ecoboost, or Toyota’s 5.7. It’s not even close. I haven’t got the foggiest how c&d got a 6,7 sec 0-60 out of that thing. Maybe downhill.
Once GM starts these deep discounts how do u turn it off n still keep sales up…?
Plus these net discounted prices will be next to pricing of the midsize CnC twins n may sabotage their launch…!
Plus pressure from new aluminum F150 n EcoDiesel Ram all puts lots of profit pressure on GM…. Good luck to new CEO…!
Guys the sales issue is some weather but all incentives. Plain and simple. No excuse no issue with the truck it is just price.
GM has a choice here hold the ground till Ford comes with their new truck with no incentives and a major price hike or blink and then try to sell trucks after offering large incentives.
If you would step back GM is not looking at taking the lead from Ford or they would have never brought back the mid size trucks.
GM will not state this publically as it would not be good to day in public but they are wanting to sell less 1/2 ton trucks at a higher exchange price and then supplement the sales and profits with the mid size truck. It is a big gamble but they more MPG and to control sales of the larger truck.
The Lighter full size truck from Ford on paper looks like a good idea but to be honest even with the aluminum there is a limit to what they can do to lose mass. A few nuts out there keep saying carbon fiber etc. but that is not in the cards as of now due to cost.
On the other hand will GM be able to make the mid size truck attractive enough to draw people from the full size to better balance the market to the trucks with a lot less mass.
Right now both GM and Ford have pitched different plans on how to deal with CAFE. Ford is a major risk as the affordability and repair cost of their 1/2 ton is at risk. GM is at risk as will people embrace the new smaller trucks and will they deliver a better mid size truck than they have in the past?
The reality is selling full size trucks with $7,000 of incentives is not going to work in the future. Also selling the large numbers of trucks even if they were 100% aluminum will not cut it in 2025.
If you note GM has finally admitted they will add more aluminum to their trucks as a back up plan. Ford has hedged their bets on the Aluminum truck with the Ranger as it was designed for North America even though it is not sold here. To bring it here would take little time and expense if needed. I expect if the GM mid size take off it will be here within a year.
As I have said before the truck market is going to fundamentally transform from what it is today. GM could increase sales 35% if they put $7K on the hood of every truck but that is not part of the long range plan here.
Again you can not look at this a month at a time or even six months at a time here as this is a big picture issue. The weather has not helped but there is a lot more going on than just weather.
To just blame styling is a fools take as the last truck did just fine sales wise and this one is even better than it. But you have to account for the much higher price. In this segment money is everything. As for the weather it has hit everyone so while it is not a help the main part here has come down to price.
Even more foolish is the claim of Mexico. Even more foolish is 0-60 claims as the 5.3 does just fine and if you need more there are options. Today most truck buyers are looking at price and MPG. This is not a Mustang or Camaro issue. Also you have to consider gearing too as these are optional.
Even if GM sales slip a little they are not losing money and in many cases making more without the incentives. Right now the GM trucks are the most profitable. Ford will face this same dilemma next year and also have the added cost of at the least $2,000 more per truck just for the aluminum.
As for Wall Streets look here I can show you a good review of GM’s plan for every bad one. Keep in mind GM stock is worth twice of Ford so many people are playing games trying to bolster stock prices. Ford still has some large loans out there and if not paid off with the good products they have been doing they could fail fast. That is why the truck move is the greatest gamble. The trucks are paying for the cars and the cars are paying the loans. If one falters then the house of cards cave in. In other words many investors could lose a chunk of money.
Just sit back and watch how GM fire sale the HD trucks and watch the sales take off.
I have no need to prove you wrong as time will do that for me with your short sighted analyst of the situation.
It is going to be fun to watch here and just follow the changes. No one will totally fail but some plans may work better and the others will adjust. In the end the market will remain pretty much balanced as it has been. There is not going to be any major shuffle in the order of things.
Finally a man that knows what he is taking about!
I’d like to hear more! Please tell!
So much miss information! Sounds like a used-car salesman trying to convince himself…
Facts:
1) 4th qtr financial results – N. America Ops:
– GM earned $1.4B with higher revenue and sales
– Ford earned $1.7B = more efficient ops and profitable!!
2) ATP pricing
– Ford has highest in the industry (Ref: Edmunds & KBB) at $40,600 – why – More hi-end trucks – Raptor, KingRanch, Limited all sell for over $50K and represent over 30% of sales volume… Fact!
– GM is close at $40,400 which is $4000 higher than old trucks (not $7000…) – GM is just getting into hi-end game with High Country
– Ram is at $37,500… deepest discounter!
3) New 2015 F150 — Aluminum
– Ford’s ACE is CEO Alan Mullaly because he brings over 30 yrs experience with aluminum from CEO at Boeing and he knows the mat’l and has The Industry connections to get best price!
– Novellis (aluminum supplier) CEO is former Ford executive… gives Ford best pricing!
– Engineers have said all new components in new F150 must be better quality and lower cost…. they are taking lots of cost OUT of this new platform and leverage it across next gen Super Duty trucks n Big SUVs…
– PLUS: These new F150’s will be CAFE POSITIVE… from Higher MPG across the board… all engines! (GM = ???)
– The $2000 added cost is False!
4) Truck market:
– Ford will offer 5 models to service the different segments of this market
–XL – entry level, V6, price price price – lots of fleet sales
–XLT – most popular vol. leader – mix of engines n features n performance – price + mpg sensitive
— Lariet – upscale features – more engine – some price + mpg… mostly upscale
— King Ranch + Platinum – Very hi-end – big engine – big price – status!
There are different tastes n needs across this market – one size does not fit all.
6) Engine tech:
– Fords 3.5 EcoBoost is rated 365 hp / 420ft lbs and 5.0 V8 at 360 hp / 380 ft lbs (Next gen willl be higher output!)
– GM NEW 5.3 V8 at 355 hp / 383 ft lbs – better match with Ford’s 5.0 (NOT the 3.5 EcoBoost)
– The New little 2.7 v6 EcoBoost with CGI block is a “Game Changer” (Ref; WardAuto) because it will allow very “High Output” from increase pressure (like a diesel) and compression ratio… going to surprise a lot of people plus its only 2.7L… Half the size of GM’s 5.3 v8…!
7) Sales
– Your quote; “GM could increase sales 35% if they put $7K on the hood of every truck” = GM Presidents Day Sale!
– Lets watch Feb sales numbers and see… I bet you are WRONG…
– You are just a used car salesman with these comments… all hot air n BS…!
Both Ford + GM are valued at approx. $57-$60B market cap… (Tesla is ridiculous at $30B…!)
All this crap about GM making $4,000 more per truck is just that, pure “CRAP”
What do the numbers say
http://www.fool.com/investing/general/2014/02/16/is-the-2014-chevy-silverado-a-failure.aspx
GM has a transaction price average of $4,000-5,000 higher than last years truck. Even the informed critics acknowledge this.
Here is the problem. GM has growing inventory and they have been trying to get off Incentives like a Meth head getting off Meth. They are moving to incentives carefully as they need to cut inventory but they can not cut prices too much or extend the incentives too long as it will kill them next year.
The public right now is price driven. I saw it today at the auto show where people were repulse by the prices they are seeing. The bulk of the average truck buyer is not a Denali or King Ranch buyer but the LT1 package buyer.
GM will catch a break with the new Ford as the price will make a larger jump than what GM did and Ford is going to not be able to offer incentives as easily on the new truck as the out going one.
The truth is GM needs a value package to offer on these trucks to make it so the average buyer can get the price of an incentive truck but GM still makes the larger profit. Not everyone want all the bells and whistles but they want a comfortable and nice optioned truck. GM could do this and price it aggressively while leaving the higher line models still available to those willing to pay.
The weather has not helped but the pricing is key as the average crew 4×4 is nearing $50K and most people will not pay it. They may consider $39-$42 but $48-50K is the breaking point.
Ford will have less options as the cost of their production will increase and they will take it on the chin if people balk at the price that will be on average higher than the GM trucks already are.
Even in the auto segment they need to back off or hold prices as who ever has the best price will start getting the bulk of the sales. Income over the last 5 years has become stagnate and the cost of living has increase and will increase even more leaving many with less income to spend on a new car.
The government is so worried about income equality it is going to leave us all equal and broke in the end. This could cost us with all out MFG if we can not afford their products. It becomes the great spiral down.
As for the Ford pricing on Aluminum that is only market analyst as Ford has yet to release numbers. Hell they will not even quote a curb weight as it is not going to be that much lighter than the GM trucks in many configurations since they are already heavier in many models.
The wild card is the GM mid size trucks. How will they be priced and how will the public take to them. I really don’t think anyone knows. Pricing will be key.
I saw one today and it was nice but they have to keep the price below the full size of it will fail.
As fore the high end trucks they help profits but they are a small volume of the market. Just how many King Ranch trucks do you see a day same for Raptors?
I think GM is being smart by not putting all of their technology on the table at once! Let Ford and dodge show their hands and then bring your technology to the table and beat them!
You Don’t Have To Be First You Just Have To Be Better Than Them!
Technology!!
I think you have it backwards… here’s why:
Technology gives you a “Competitive Advantage” vs. competition because it gives you greater capabilities in the market and you Protect it (your Intellectual Property/IP) with Patents… for 15 years!
When Ford announced the new aluminum 2015 F150 they also announced 114 Patents to protect a wide variety of their new technology – AL manufacturing, tech features, 2.7 EcoBoost and more…
When you have Technology you bring it to the market ASAP – with Patent protection because it can give you years worth of advantage over the competition – because they must “reverse” engineer around your technology to come-up with an alternative solution… this takes time and more money…. not always the best solution either… most of the time a limited work around. (Note; It took GM 3 years after Ford’s 3.5 EcoBoost for the 3.6 V6 Turbo…)
EX: Fords “Award Winning” 1.0 L 3-cylinder EcoBoost engine has tons of new tech in it that gives it great efficiency and power beyond any competitive 1 L 3-cyc engine… like GM’s new 1L does not have near the power or efficiency of Fords…!
+ Daimler (Mercedes Benz) is interested in partnering with Ford for the tech… cant beat’em – join ’em!
Plus, Customers recognize market leaders with who is First to market…. Ford!
“Technology gives you a “Competitive Advantage” vs. competition because it gives you greater capabilities in the market”
^This, brian, needs to be hammered into your head.
You win by constantly innovation, not by foolishly hoping the competition overlooks something.
None of that matters if your competitors are allowed to take your idea’s after you come out with them!
You think GM hasn’t taken ideas after a competitor debuted them first on their products?
The alternative is to not innovate at all, and let your competitors take home awards and accolades, and then hire the best engineers and designers who want to apply their skills and creativity.
It’s like you want GM to fail because you’re afraid of the competitors making a better product with technology not their own , you Luddite.
The good news is that the industry doesn’t work like how you think it does. Technology drives change and consumers. They want the best now and they aren’t going to wait for GM to play catch up.
Technology is important for some of the market. The folks who drive around with nothing in the bed like all the tricks and toys.
The fleet buyer and construction guy just want a solid truck that is not going to cost them $50K just to go to work and beat up.
There is more than one market in this segment and both need addressed.
The trick Ford is using is marketing for their technology. The gains with Aluminum will be small over GM weight but Ford is already marketing it like the truck is going to be light as a feather compared to the others when it will amount to only a couple hundred pounds. GM has invest heavily in high strength light weight steels to lose pounds in the last two gens of trucks. It was a way to keep the cost of the trucks down a little more. Boron Steel is more expensive but cheaper than Aluminum.
The same for the EcoBoost engines. They are good engines but are they really worth the extra grand over the good V8 engine. Some people believe so due to good marketing. Compare that to the Ecotec Turbo and how GM has sold it for years and it is a better engine than the Ford Eco 4 but GM does so little to market it properly.
I have drive the Eco 4 from Ford and the Ecotec Turbo in my daily driver and there is no comparison. I even drove the Ecotec Turbo in the CTS AWD and it is a very good and impressive engine.
Either way MFG have a wide demographic in the truck market and technology is needed for some but others are still more about using trucks as they once were durability and cost are still a factor.
A good example of this are many parts stores who used to use trucks to deliver parts are now using Sonics and Sparks as truck are too expensive.
The problem with coming to market first is the government’s around the world don’t not prevent other companies from using your idea’s!
These other companies just change a few things and call it their own idea! This is not the way it should be but the government won’t let one company hold on to technology even if they were the one that pioneered it!
Please show some examples of companies “stealing” others ideas n just making a few changes to call it their own…? Please give proof of ur comment otherwise its BS…!
Intl patent laws and Big companies with armies of Attorneys Protect the companies intellectual property with expensive lawsuits n litigation n cease n desist orders…!
The only place rampent copying occurs is China n 3rd world.
You want one! You think I’m full of bs?
Then try Samsung! They even lost in court! They stole apple’s ideas with the I phone pad pod ect! They were forced to pay a fine but we’re still allow to sell products in the US which apple was seeking!
BS I think not!
I wish I could tell you what I really want to but well you know!
Do you want more examples? There are plenty of them!
I guess you don’t like facts!