Earlier this week, we noticed that Chevrolet boosted the January 2019 incentive for the all-new 2019 Silverado 1500 by about $1,500, making us wonder about the reason for the increase, and whether or not it was a reactionary measure to falling Silverado sales in Q4 2018. Turns out that this is not at all the case, and things are going according to plan for the launch of the all-new Silverado.
Advertising Lull
One key factor that has gone underreported is that Chevrolet did not do any paid advertising for the Silverado in the 2018 calendar year. This was a strategic decision driven by the fact that production of the all-new 2019 Silverado 1500 was nowhere close to full capacity in 2018. The very first units of the 2019 Silverado started arriving at dealers toward the end of August 2018, and that was only the Crew Cab body style with limited engine configurations.
Chevrolet’s Monte Doran tells us that, due to the planned lack of Silverado advertising in 2018, along with limited availability of the all-new Silverado, Chevy fully expected for Silverado sales to slow, and fully expected as much.
Sales Numbers - Full-Size Mainstream Pickup Trucks - Q4 2018 - USA
| MODEL | Q4 18 / Q4 17 | Q4 18 | Q4 17 | YTD 18 / YTD 17 | YTD 18 | YTD 17 |
|---|---|---|---|---|---|---|
| F-SERIES | -3.28% | 230,312 | 238,128 | +1.40% | 909,330 | 896,764 |
| RAM PICKUP | +28.27% | 161,397 | 125,822 | +7.24% | 536,980 | 500,723 |
| SILVERADO | -3.64% | 161,178 | 167,274 | -0.05% | 585,581 | 585,864 |
| SIERRA | +6.06% | 67,312 | 63,467 | +0.74% | 219,554 | 217,943 |
| TUNDRA | -0.43% | 30,476 | 30,608 | +1.70% | 118,258 | 116,285 |
| TITAN | -27.37% | 12,620 | 17,375 | -4.66% | 50,459 | 52,924 |
| TOTAL | +3.21% | 663,295 | 642,674 | +2.09% | 2,420,162 | 2,370,503 |
And that brings us to the topic of incentives.
Cadenced Launch
The mid-January increase in Silverado 1500 incentive was strategic. As Mr. Doran explained, the incentive boost was timed with Chevy’s National Marketing launch for two specific reasons.
First, Chevy wanted to successfully sell down the inventory of the outgoing, last-generation K2 Silverado, which remains in production in a single body style (Extended Cab) and powertrain configuration (5.3L V8 L83 and 6-speed automatic transmission). Second, Chevrolet had a cadenced production ramp for the all-new Silverado, and January was when production would reach a 50-50 split between the all-new and last-gen truck.
Ram’s Sky-High Incentives
Chevy’s mid-January increase in Silverado incentive spending pales in comparison to the incentives offered by FCA on the all-new, 2019 Ram 1500 pickup. In fact, Ram is discounting almost every model and trim level of its all-new, light-duty truck, while Chevrolet’s only incentive on the new Silverado applies to the Crew Cab body style equipped with the All Star and Z71 packages.
Nationwide Ram discounts on the all-new Ram 1500 for January 2019 are as follows:
- 2019 Tradesman:
- $1,750 total cash allowance, or
- 0 percent financing for 36 months
- 2019 Big Horn / Lonestar:
- $4,750 total cash allowance or
- 0 percent financing for 36 months + up to $1,000 bonus cash or
- Lease for $325 / month for 36 months + up to $2,500 bonus cash
- 2019 Laramie:
- $2,750 total cash allowance or
- 0 percent financing for 36 months + up to $1,000 bonus cash or
- Lease for $408 / month for 36 months + up to $2,500 bonus cash
- 2019 Rebel:
- $1,250 total cash allowance or
- 0 percent financing for 36 months or
- Lease for $470 / month for 36 months + up to $2,000 bonus cash
- 2019 Laramie Longhorn:
- $1,250 total cash allowance or
- 0 percent financing for 36 months or
- Lease for $584 / month for 36 months + up to $2,000 bonus cash
- 2019 Limited:
- $1,250 total cash allowance or
- 0 percent financing for 36 months or
- Lease for $606 / month for 36 months + up to $2,000 bonus cash
- 2019 Silverado Crew Cab LT All Star Z71: $3,005 price reduction below MSRP + $2,500 loyalty purchase cash + $1,000 option package discount = $6,505 total value
Full Steam Ahead
All in, the notion that Chevy increased incentive spending as a reactionary measure associated with the competition, which we presented earlier this week, does not seem to correlate to reality – and the launch of the all-new, 2019 Silverado is going according to plan.
Stay tuned to GM Authority as we cover this developing story, as well as for more Chevrolet news and Silverado news.
Comments
So they were supposed to take 5 eternities to roll out an entire lineup-take that back-I JUST started to see a Double Cab last month, I have yet to see any Regular Cab nor any sub-LT model…yeah, not buying it. Not a fan of the new Silverado or GMC Sierra, but nice advertisement on the latest Motor Trend snd Southern Living magazine issues!
I LOVE Silverados but you cant make me believe that these trucks are selling like Gm wants them to this is bull I remember a story when the redesigned f turd 150 came out saying that one was selling every 80 seconds to me these trucks aren’t even selling as fast as the 14 model year silverados
According to my math, they sell a ford f-series pickup every 35 seconds or so. That’s close to 2500 trucks a day.
To put that into perspective, the C7 Corvette rarely hit 2500 sales in a month.
If you’re going to talk about perspective you can’t compare an F150 to a C7…
Ram has always relied on mega incentives to move trucks.
My two most recent encounters with Ram trucks. 1. 2019 Longhorn Limited – 12” screen has massive glare. 2. 2018 with 15,000 miles, clothe seat is worn through. And I not at the stitching. Actually the cloth on the drivers seat thigh bolster.
Sooooo they were supposed to get Destroyed by the Ram for Truck of the Year huh? That was all according to GM internal plans? Come on now LOL
YEP
I would have expected a GM person to come out and say ” The Silverado sales are terrible” WHAT
Funny they didn’t have a JD Power award for best launch of a new truck design.
Really
Get out in the world and LOOK !!
This is great !! A GM guy says a GM plan is going exactly as GM planed !!
You can’t make this stuff up !!
“O” by the way, I received two more CUSTOMER satisfaction letters from GM just this week. Great more FAULTY parts.
Not to worry, your new Sierra HD will be on it’s way soon! ツ
Yep this release is going so well I got a call from the dealer saying when are you getting that new truck you were interested in. I reminded them it was the HD.
So you are correct it is getting closer.
It will be like a test to see what one had the most FAULTY parts when built. The 2017 is up to SIX currently letters from GM.
The 2015 Canyon is up to FOUR letters from GM, plus a Trifecta tune for the trans shift.
The 2014 ATS is up to THREE letters from GM. Rear end leak, and CUE delamination.
Maybe when I get the new one it will be like my 2007 Silverado LBZ, ZERO letters, ZERO trips to dealer, 140,000 + miles, GREAT TRUCK, GREAT GM PRODUCT.
Don’t buy 1 I wasted 70 thousand dollars and drove my high country for 4085 miles and now it’s sitting at the dealer with a bad transmission
They should fix it under warranty and it’ll be as good as new. The same cannot be said for all the cheap sensors throwing error codes. “Check engine, lane assist unavailable, service ESC, service braking system, speed limited to 62mph, service steering assist”. They will all be your friends for the duration.
The brake alert should be taken seriously, there have already been many brake failures with the 2019s.
I don’t recall a GM pickup launch that garnered this many negative reviews. I believe things are going as planned but I cannot believe they are happy. And if they are happy, they are surely disillusioned.
I have said this before right here, this is an ok truck but ok does not cut it.
Mr. Croft, I’m sorry to hear about your truck.
Slow roll out and factories being closed. Something doesn’t add up?
the slow rollout is to prevent having 10 of thousands of trucks out there if there is a problem with assy. process or a supplier part and have a big expensive recall
Bring back the extended cab Silverado…..QUICK….I’m in need of a new vehicle,,,,,OLE BlU is now 26 years old,,,,,,
GM will sell tons of T1s and will remain the sales leader. Any comments to the contrary are simply reactionary anti-GM hysteria. Thanks, alex, for setting the record straight.
Is this the Onion, or GM Authority? Hahahahaha!
Ram P/U’s were up 19% for Jan. Yes they had strong incentives, as they typically do, the difference this time is…….they have a better truck than they typically do.
Latest ad I saw was all done in Lego. No actual shots of the exterior or interior. Interesting approach when you make the truck look worse than the actual truck…which still doesn’t measure up to the current competition.
Hardly seeing any of the new T1 trucks. Pricing is out of sight and interior design is tepid at best. Many more new 2019 Rams running around these parts.