The story of the first quarter of this year is the 2019 Chevrolet Silverado’s fall as the newest Ram 1500 takes off on the market. However, GM is hardly worried.
Speaking at a Goldman Sachs Industrials & Materials Conference in New York City, GM President of the Americas, Barry Engle, said the automaker’s market performance is “exactly” where he expected it to be at this time, Automotive News (subscription required) reported Wednesday. The 2019 Silverado is selling for $3,000 more on average compared to this time last year, while the 2019 Sierra hauls in $4,300 more. That pegs the average 2019 Silverado as a $41,700 truck; the average Sierra leaving a GMC dealer costs $48,500.
Per GM’s presentation, the Sierra leads the segment for average transaction prices, with customers spending $5,500 more at GMC than for a Ford F-150 pickup (on average, a $43,000 truck). Chevrolet is in third, Toyota in fourth ($41,300), and Ram in last place ($39,700).
What’s interesting is to see GM’s share of lower-cost full-size pickups decreasing—likely where Ram continues to pick up sales. In the same presentation, GM showed a 5.2 percent drop in Silverados and Sierras that cost between $30,000 and $40,000. For trucks that cost between $25,000 and $30,000, the decline is a sharper 13.2 percent. Meanwhile, increases were abound for $40,000-$50,000 trucks (up 0.5 percent) and $50,000-plus pickups (up 12.3 percent).
At this point in the Silverado and Sierra’s launch, we’ll start to see more volume-selling models appear in LT and RST trims, which will paint a clearer picture of the full-size truck sales race. GM will also launch the new Duramax diesel engine for its light-duty pickups, which also help boost average transaction prices.
Source: Automotive News (subscription required)