Truck Sales Prove To Be Crucial For Chevrolet Amid Recall Crisis
2
Sponsored Links
General Motors and Chevrolet took a hit this year over the millions of vehicles recalled over a faulty ignition switch and numerous other issues, but strong sales and high transaction prices on its full-size trucks and SUVs has turned what otherwise would have been a rough year into one which Chevy boss Brian Sweeney describes as “consistent.”
Sweeney told The Detroit Free Press the 3,100 dealers and their service departments handling the repairs of 26.8 million Chevys have been “extraordinary throughout the recall debacle. The dealers have been referring customers with recalled Cobalts or Malibus to new models, offering them test drives if their repair takes a few hours.
Chevrolet’s sales are up 3.1% in the first 11 months of 2014, off base with the industry jump of 5.4%, but the automaker has more than made up for by selling high profit vehicles. Silverado sales are up 8% year-over-year, while Tahoe sales are up 15.5%. Sweeney is also happy with initial interest in the mid-size Colorado, and is even more delighted with its $33,000 average transaction price.
Falling gas prices have especially boosted sales of full-size vehicles in the closing months of 2014, but it’s a bittersweet development for Chevy. The brand is ramping up to introduce the next-generation Volt in Detroit, and low gas prices could hinder consumer interest in the all-new extended range EV. Sweeney says they remain confident in the car’s success, especially in markets like California.
- Sweepstakes Of The Month: Win a Corvette Z06 and 2024 Silverado. Details here.
Sponsored Links
Crossovers and family vans style Audi Q3 Cadillac SRX also sell very well today
Grab the note GM
Regards from Spain
The CUV’s has all are top sellers in the market and the lower gas prices are just what they needed right now to keep the cash flow coming in from the high profit trucks.
For once the timing could not have been better for GM.
This is when they need to make the money and get the new products to the point they make money as the trucks are going to be less profitable in the future with all the issues they face.
That is key to get why the Colorado and Canyon will be important as they get more MPG and offer a lower cost alternative to the ever increasing prices of the full size market.