As you may have already heard, there has been a lot of talk about GM’s U.S. sales results for the month of January 2014. The discussions have mostly been on the negative side, with The General’s full-size pickup trucks being the center of attention. Since we haven’t seen any analysts or reporters use actual sales numbers to determine the validity of the “GM is doomed” claims, we’re going to do so ourselves.
As a reminder, January sales were down across the industry as a result of a fierce combination of cold weather and snow, which kept buyers at home and away from dealerships. As it relates to pickup trucks specifically, GM has refused to match massive incentives offered by Ford and Ram, thereby focusing on higher profitability instead of market share at any cost. To note, GM’s pickup offerings are all-new and represent the next generation of the vehicle lines, while both Ford and Ram are offering outdated last-gen models, hence the steep discounts to keep interest and top-of-mind.
| MODEL | CHEVROLET SILVERADO | GMC SIERRA | GM COMBINED | FORD F-SERIES | RAM PICKUP | TOYOTA TUNDRA | NISSAN TITAN | TOTAL |
|---|---|---|---|---|---|---|---|---|
| JAN 2014 SALES | 28,926 | 11,118 | 40,044 | 46,536 | 25,071 | 7,890 | 887 | 120,428 |
| JAN 2014 SHARE | 24.02% | 9.23% | 33.25% | 38.64% | 20.82% | 6.55% | 0.74% | 100.00% |
| JAN 2013 SALES | 35,445 | 12,846 | 48,291 | 46,841 | 20,474 | 7,004 | 1,394 | 124,004 |
| JAN 2013 SHARE | 28.58% | 10.36% | 38.94% | 37.77% | 16.51% | 5.65% | 1.12% | 100.00% |
Overall, GM’s Chevy Silverado and GMC Sierra made up 40,044 sales in the U.S. in January 2014, down 8,247 units on an annual basis. Those numbers give GM a market share of 33 percent in January 2014, compared to 39 percent in January 2013. By comparison, cross-town rival Ford saw the market share of its F-Series line rise slightly, from 37 percent in January 2013 to 38 percent in January 2014 (Ford’s full sales results available here). Meanwhile, the Ram pickup recorded an even larger jump than The Blue Oval, going up from 16 percent to 20 percent.
The GM Authority Take
Even with all-new offerings, GM was, in fact, the only major pickup maker experience a drop in market share. Yet as we outlined before, the average transaction price was extremely healthy, and simply couldn’t be matched by the highly-discounted vehicles beings sold by the competition. What’s more, we’ll be patiently waiting to see how the all-new 2015 F-150 will affect the sale of Ford’s truck as it arrives late this year. Something tells us that The Blue Oval will discontinue the massive incentives upon its launch.
Comments
Market share percentage is a good way to look at it. Maybe this will quiet the mathematically challenged (“but GM still sold more than Ram and Tundra”) crowd. The fact is competitors are gaining while GM is losing sales despite having the newest design.
New models usually always start selling strong and then after they become stale, sales go down and incentives go up in order to keep selling.
What is different here is that GM started out with something stale right out the gate, so it’ll only go downhill from here unless something revolutionary happens, either in pricing or in the engine bay.
Sorry Magirus you still can’t just toss in the towel over a couple months. Again you need to use all the fact of what is going on.
Bad weather limited models yet. No new HD trucks yet and massive discounts on the other brands all have to be factored in.
Also you have to account for the price increase of the new Ford that will not be much lighter than the present truck along with the fact GM has to price under the present full size trucks the new Colorado and Canyon.
You discount the new GM trucks now and you will doom the smaller trucks as well hurt the GM trucks when the Ford goes for the higher price next fall.
GM’s greatest issue is they so many discounted trucks last year too that it would also hurt sales this year. If the last truck sold fine there should be no reason to expect this one to sell well as time moves along as availability of more models becomes greater.
This is like the idiots that are trying to tie Global warming to a 100 years of weather records but yet can’t tell me what the weather will be a week from now with more than 30% accuracy.
There is a method to the madness here and you. There is a lot more to this than what you want to factor.
But if you expect GM to fire sale the present trucks just to move a few percent more than you will pay for it in the future.
There is a price of your soul for every rebate incentive deal you offer. Greater market share is not of any use if you kill your profits and destroy your price structure.
GM is in a way paying for all the incentives for the last 10 years now. It is like crack it is easy to do but hard to give up. GM is trying to kick the habit.
Note too GM had near record sales with the incentives last year and you can repeat that over and over.
Guys, GM’s main problems are (1) marketing, and (2) design. There just was not enough excitement created by them before the launch. There was not a lot of people waiting to test drive this all new truck. Look at the buz Ford created with this so call atlas concept! They had people talking about the new F150 a year before launch. We can also agree that GM’s design of the new truck was too safe, and hurt sales.
I also think GM’s strategy of naming their competitors in their ad is a mistake ( more fuel efficient than Fords ecoboost, or ATS better than BMW 3 series, etc). I hope I’m wrong, but all indication points to this truck being less successful than expected. Full size trucks along with mid size sedan are the 2 most fiercely competive segments, with every manufacture bringing their A game, so GM better be careful
Yeah, they need more marketing and a new design. I was kinda thinking of going back to Chevrolet from Toyota but with those awful looks trucks they have now? No way. Even the Yukon and such are horrible looking. Marketing will not fix that and GM either needs a quick redesign and just be happy with coming in third place in the near future and then in the foreseeable future after that.
I for sure agree on the marketing.
Ford has created a great illusion with the Ecoboost. It is a good engine but not really much better than the V8 engines other than torque range. They charge more for it and the MPG is not better.
If you are better I see no problem comparing just don’t fudge it up.
The real issue is the big discounts last year. I have people I work with that would like to buy a new GM truck this year but are holding back as they don’t want to spend the money now and find them on sale in July or October.
While there is nothing wrong with the trucks we have today I did wish they did change them a little more styling just to represent the changes that it really has. Same on the 4.3 as while it is totally new the engine size says I am just the same old engine that was here before when it is not. Same for the 5.3 as where the bore centers are the same not much else is carried over. This is why I stopped calling them small blocks a long time ago as they really are not the same engines and to be the cheapens them.
But Ford has done well on the marketing end with the new engines and will continue with the Aluminum as they have a fight ahead on the higher prices. But they over came that even with the Ecoboost as they are more than the V8.
The real thing GM needs to do is just keep the price lower than the Atlas as they will not see incentives and find away to pick up the 280 pounds they will be over to match Ford on weight at a lower price. I do not see aluminum as the way to go if you can do it cheaper in high strength steel. Aluminum is fine for a high end sedan or coupe as it does not see the repair issues as much as a company truck. Also people do not buy them for economy. It is ok for doors and hoods but I would not make anything that cannot be bolted on aluminum.
This is a long race and it cannot be judges till the end of next year.
Scott, this a a very good truck, the problem is, it is not significantly better than Ford’s existing old truck. All bias aside, if you compare, say a LTZ vs a King Ranch or Platinum, and Dodge’s Laramie, in terms of capability, luxury and real world fuel economy , there is not much difference. Not enough to get conquest sales, and not enough to get people on the fence to open their check books for GM. Compound that with the marketing and styling blunders, you see why I think GM will struggle to get the prices they want, being today, six months time or next year. Is like GM is always playing “catch up” instead of being leaders in the segment.
Remember Chevrolet’s old ad? Don’t buy an ugly truck??? People have finally started listening and know Chevy has to face the music
Magirus, you just can’t stop jumping from story to story hoping someone will believe what you are saying. Wow.
I am actually quite impressed by these numbers. GM was only 6500 units behind Ford and still killed the Ram and that is with a $5000 higher end price to the consumer. Imagine what sales would be if GM matched the other’s pricing?
$5000 x 40,000 trucks = $200M. That is the extra profit GM made on these trucks. Ford’s extra 6500 units at estimated $15,000 profit / truck (after all the rebates Ford give back out of profit) = $97M in extra profit from the higher sales volume.
Gee, who wouldn’t take $200M over $97M if it meant being second?
It seems today that market share is what everyone wants. They tend to forget that profit is what allows for R&D to bring new product and technology to the public quicker (and everyone wants changes/upgrades every couple years). Remember when GM and Ford bought their way to the top? How did that work out? Yeah, Ford took Billions in government backed loans/mortgages on all their property in 2006-2007 and GM took Billions in government bail out money (so both companies took the same bailout, just that Ford did theirs in a less-apparent way).
Scott, you are right – the Ecoboost isn’t MUCH better. But it IS better, in that old Ford truck, as in equally efficient as GM 5.3 but also a lot stronger. Fast forward a year and imagine the same Ecoboost engine burdened with 700lbs less. I would guesstimate 26 mpg highway in a truck that accelerates, turns and stops much better than anything else in the market.
If GM wants to be even remotely competitive they had better get with the program.
I have to agree with you here Magirus, Regardless of the weight difference between the trucks (250lbs according to Scott) you are spot on, an improved ecoboost, pulling 700 lbs less weight might be a game changer! I heard a rumour of 380hp and 445 lbs torque. Holy cow!!
Really guys, over $100M difference in profit for GM by not matching the extra $5000 rebates and only being behind by 6500 units doing it and 2 of you are thumbs down to that? Business 101 folks, don’t be stupid.
The Ecoboost is great in theory and lots of people are having success with it. But there’s a lot of people having problems also with a boosted V6. My dealer had 2 2013 Ecoboosts traded in last fall due to continuing issues with humidity problems in the turbo which throws the trucks suddenly into limp mode (after Ford said they dealt with that issue in 2012). Their last fix told the customers the issue was over but guess what, we took one back after reselling it due to the issue and the other didn’t make it off the lot before the limp mode came on.
Secondly, my best friend is a Ford guy who brags about his 2013 Ecoboost…… up until last August when he was pulling his 7500lbs loaded camper on a 2 week holiday with the kids. He was pushing a 75 kms/hr wind one of the days and after 4 hours, he melted his turbo. Again, Ford said they had fixed this issue in 2013 models but clearly not all. He is now driving a 6.2 L 2014 Silverado and with only 10,500 kms it is already within 1mpg of what his ecoboost was giving him and he says it has much better performance (of course with much more hp and torque). He pulled his trailer south for a month (he is an early retirement guy) and said he could really notice the extra power of the 6.2L and only gave up 1 mpg.
For those excited about the next boosted ecoboost in 2015 with more hp and more torque (I have read between 370-385 hp and between 420-425 torque), it still doesn’t match the 6.2L performance of 420 hp and 460 torque. With the increased hp and torque, the ecoboost will likely stay around the same economy as right now — lighter truck but more hp/torque. Plus the next ecoboost will be Ford’s biggest engine since the Raptor motor will be no more. Ford is trying to make one motor cover an entire range of use by different owners (the 5.0L is really only for those who drive and don’t tow much). GM has 2 V8’s each designed for specific uses. 5.3L for those who want adequate V8 power for in reality up to 8000 lbs and then the 6.2 who want either performance/sport power or those who tow 8000+ lbs regularly. Specific engine for specific uses/customers. Plus 2 engines that perform well and don’t require premium fuel to get the max rated hp/torque, no turbos, intercoolers, etc.
You guys can make up numbers all you want about GM making an extra 100 million. Why then have they panicked and reduce prices so drastically this month? Why is the new truck now available at dealer invoice price? As to the reliability of the ecoboost, anybody can give a “horror story” about any vehicle from any manufacturer, substantiated or not. The fact is, there are almost half a million ecoboost trucks on the roads in North America right now, with 99% of satisfied customers, so GM better start paying attention, or they will continue to lose market share.
Autopal, I work at a GM dealership and exactly where is GM advertising invoice pricing? There may be individual dealers advertising Invoice pricing (but then they usually hold the rebates as profit), but it is not a GM thing, at least not in Canada.
Why does Ford and Ram have such huge rebates on their 2014 trucks? Because they are buying market share. That is what got Ford, Dodge and GM in trouble in the first place a number of years ago.
You are right, there are almost 1/2 million Ecoboosts on the road and most people (I don’t exactly know if it would be 99%) are happy with their trucks. There are the same number of GM trucks on the road and the same percentage of customers are happy with them. Right now a lot of GM buyers are waiting to see if GM will match the rebates Ford and Ram rebates later in the year. For those who think the 2015 F150 will have huge rebates like the 2014, guess again. I hope all you guys who are bashing GM for high prices now come on these forums next year and complain about Ford’s pricing too. Of course, we won’t hear a peep from you then.
http://gmauthority.com/blog/2014/02/gms-presidents-day-sale-includes-big-incentives-on-2014-pickup-trucks/
Autopal, you say there is no significant difference between the new GM trucks and the current King Ranch, Laramie, etc. Besides having an aluminum body, there is really no significant difference between the new 2015 F150 and the current LTZ, Laramie, etc. Besides a smaller engine Ford wants to put in them, they have the same look (except for tweeks like the grille and headlamps), only tweaked suspensions, tweaked frame, same braking system, with a few added toys like ramps that hook on the inside wall of the box. Plus their new Ecoboost is rumored to still have less hp and torque than GM’s 6.2L and will likely get the same mpg as the current one (because of the increased hp/torque).
I’d say the new F150 really has nothing over the GM, nothing at all.
dpach, your friend put over 10k km on an engine that only very recently became available to dealerships? I do hope the story is true, someone trading in a busted Ecoboost for the mighty 6.2.
You are right, Ford prices will go up for the new model but their sales won’t go down unless the economy takes a dump. Why? Because people will be able to distinguish between the ’14s and the ’15s. It’ll be cool to own the first aluminum truck and to have the choice between two turbocharged engines. Everyone will want one and they will be willing to pay extra. Just wait and see.
Ford does have a marketing edge but not any other edge.
It is true the new Ford will only add Aluminum and features that will really set it apart as the styling is similar. Ford has done similar styling changes for years and no one has ever said boo.
One factor too this year was GM raised prices. This is a big factor when you do not add in an incentive when everyone else is and when you have been doing it for the last how many years. Sales are going to drop some till the others catch up with the pricing. You can only discount so long.
The thing that will hurt the Ford is the fleet and company sales as this is where price it king and where they discount the most. Also if the cost of repair goes up on aluminum bodies and turbo engines this will also be a factor.
Then the wild card will be the Colorado and Canyon as to what effect they will play. Many like me are interested but we have to see it first and the pricing to see if they can move us there. If the truck is cheaper than a full size most will move there but if no most remain in a full size.
GM needs to market heir trucks better with how the V8 does better MPG and I would like them to close the small gap on weight and make Ford new Aluminum truck not really worth the extra price. Right now the Chevy is just one fat buddy heavier and the Ford is not 700 pounds lighter than the Chevy. Is that going to be worth $1500-2500 more.
Also it is not like the new truck rust out like in the past.
Scott, you keep missing the point on weight. Nobody is disputing the fact that new Ford will only be about 250lbs lighter than the current chevy, the key here is that Ford’s new and upgraded engines will be saddled with 700lbs less weight compared to the present F150.
Any minor improvements Ford make to the engine/power train, with the kind of weight reduction they are talking about, can make a huge difference, in terms of power to weight ratio, capabilities and fuel economy. GM may boast of a 1 mpg better than the old F150, but i can tell you that GM’s cylinder de-activation does not work 95% of the time during normal, real world operation. I’m not bashing GM, but i think this new F150 have the potential to be a real game changer. I guess we will all have to wait until all the specs, test drive and comparisons are done later this year.
One thing you have to give to Ford though, they are bold. 4 years ago, a lot of us thought it was a terrible idea to put a turbo V6 in a full size truck, nearly half a million truck sold later, the look like a geniuses. so lets see how this aluminum thing work out. Time will be the judge, i suppose…..
Autopal, no doubt Ford will have an improved truck with the lower weights and tweaked Ecoboost. And good on them for raising the bar. It will increase their tow ratings and payload but I would like to see how the newly adopted trailer rating system will affect all the truck’s ratings. It may not be any different than it is now.
Ford hasn’t released an entirely new truck since the 1997 launch when it was a new truck, new engine, new etc. Since then they have mastered introducing a new body/look one year, tweaked or new engine a couple years later, new transmission a year later, and then a tweaked interior after that. So they have a reason for people to upgrade every couple years.
GM got roasted by owners for having the exact same truck from 2007 – 2013 (except for the 6-speed introduction) mainly due to the restructuring they did with the bailout and the necessity to add vastly improved cars/suv’s to the lineup and they only have so much R&D money. Now they are moving towards the idea of something new every couple years to keep customers interested and now they get slack for not having everything to make the perfect truck in the first year.
I have no doubt GM has a number of things coming during this truck’s cycle. The new 8-speed is only a short time away and I doubt they have tweaked the new Ecotec3 motors yet; there will no doubt be more to come once Ford reveals their new truck’s specs. Will it be game changing from GM, not likely but it’s all about a mix of economy and performance and having the right combination for the right purpose.
I think sometimes we all get caught up in the hp/torque hype when in reality, only a small percentage of customers actually use their truck’s max power/torque on a regular basis. Are hp/torque important, heck yes, but in reality if I was pulling a 9000 lb trailer everyday, I wouldn’t be using a half ton anyways.
I do get the point and I do expect gains but GM will also gain with the new tranny and other things they will bring to the table. They have not shown all the cards yet.
I for one said Ford was doing the right thing with the Turbo and was disappointed GM has not indicated they would do the same yet. While it is not a big gain in MPG it is a good marketing advantage. Also the torque curve is something that is flat and can not be matches with the NA 4.3. I know as I get 315 FT LBS in my 2.0 Ecotec.
My issue us with the marketing. Ford is going to market the heck out of the aluminum and the Turbo and while on paper neither are going to be improvements over GM it does make for good selling points for buyers to get excited about.
Most people really have no idea of the impact of either of these features but since they are new they will be excited for them.
I would like to see GM use Aluminum in the doors, hood and tailgate but keep the rest steel. I would like to see an addition of a better V6 that at the least appears new and offers the advantages of the turbo torque curve.
Never underestimate the public and give them what they want is at times better than giving them just what they need.
Read this and learn the big picture that I have tried to explain.
http://www.fool.com/investing/general/2014/02/16/is-the-2014-chevy-silverado-a-failure.aspx
I like it when you get facts in the way.
So, if ford continues offering good deals when the new truck comes out, does that mean GM should no longer consider it a “temporary market tactic” and may have to respond by giving a good deal on their trucks too? The fact that this is something they see as a negative makes me wonder if Old GM is truly dead. It seems like arrogance to me.
The “Old GM” would have thrown incentive money at anything — so the New GM’s ability to not do that is proof positive that Old GM is dead and gone.