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  1. #1

    Enkeiavalanche's Avatar
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    Apr 2010
    Piermont,NY, back in Northern NJ now, But may be in IL soon....

    Default GM's Pickup Inventory Approaches Troubling Levels


    2011 Chevrolet Silverado 1500 LTZ
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    When General Motors planned production of pickup trucks for 2011, the automaker counted on a strong economic recovery to drive pickup sales to pre-recession levels. Given that pickups have higher margins than cars, that seemed like the best way to increase profits and drive up stock prices.
    The problem is that the planned economic recovery hasnít happened, and truck sales arenít anywhere near the automakerís projections.
    Jim Ellis Chevrolet, a metro Atlanta dealership, was stocked up on [COLOR=blue !important][COLOR=blue !important]Silverado[/COLOR][/COLOR] pickups by GM early this year. Sales havenít materialized, and the dealership is faced with over six months worth of inventory at current sales rates, a situation the dealershipís general manager calls ďa little scary.Ē
    GM currently has some 280,000 Silverado pickups on dealer lots, which translates into 122 days' worth of inventory. Thatís not a concern for GMís vice president of U.S. sales, Don Johnson, who cites the complexity of the product line as justification for the larger inventory. Cars only come in a few configurations per model, so a ďnormalĒ inventory for a particular automobile would be 60 or 70 days. Because trucks come in more shapes, sizes and variants, Johnson sees 100 or 110 days' inventory as normal.
    In defense of the current situation, Johnson told the Detroit Free Press, ďWeíre managing the business to match production with demand in the marketplace. Nothing in the last few months that we have done would indicate any different.Ē
    Indeed, GM has idled truck plants in Michigan and Indiana through July 15 to address the inventory buildup, and further adjustments may be necessary to normalize inventory. Lower production is already planned for the second half of the year.
    Thatís not enough to satisfy some critics, including Peter Nesvold, and [COLOR=blue !important][COLOR=blue !important]industry [COLOR=blue !important]analyst[/COLOR][/COLOR][/COLOR] for Jefferies & Company. Nesvold points out that Ford is running at 79 days' inventory across their equally-complex [COLOR=blue !important][COLOR=blue !important]pickup [COLOR=blue !important]truck[/COLOR][/COLOR][/COLOR] product line, and says that GM averaged just 78 days' inventory at year end from 2002 to 2010. In a research note, Nesvold goes so far as to ask, ďIs GM falling into old, bad habits?Ē
    The truth probably lies somewhere between the two extremes. GMís truck product line is overdue for a revamping, which isnít likely before the 2014 model year. With inventory high, itís likely that dealers are willing to negotiate on price, so if youíre in the market for a GM pickup, thereís no time like the present to cut a deal on one.
    08 Z71 Avalanche Mods to date: K&N CAI,Hellwig Swaybars and End Links, Corsa Sport Exhaust, Superchips Programer,IPCW LOF & 3rd brake light and tails, AMI Gas door,Show Hooks and Door locks, Enkei Wheels, with Pirelli tires, StreetScene Bowties, Grant Steering wheel,Muth signal mirrors,SSBC Big Brake kit,Huskyliner Mug gards,Floor mats and Hood shield, McGard Lug nuts and locks, Bedrug, Cervini's Ram Air hood,35watt HID Fog lights, Sylvania bulbs all around ZXE's Highs and Lows, WhiteNight Back up lights,Sirius and HD Radio, SnugTop sitting on deck now Got a Softopper on now,Tempress Boat Hatches.... New Bilstein shocks are on... New Mods coming soon..... X

  2. #2
    Caddiac's Avatar
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    May 2011
    Upstate South Carolina
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    The last sentence says it all. If you ever dreamed of sticking it to the dealer, there is at least one (Atlanta market), that is starting thing about picking up the soap!

  3. #3
    murdog94's Avatar
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    Feb 2008
    Cloquet, Minnesota, United States
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    They will still make money on a deal no matter what..... However that is kinda scary that GM is running that high on inventory since even going into the recession they didnt hit those levels... Do i see 10K in rebates coming on the GM trucks??? Come on GM i american made and want a truck that is to keep it together!


    1997 Chevy S-10 Blazer 4X4 with 330K miles and counting (Hunting rig).

    2009 Saturn Aura XE (wifes car)

    2011 F-150 Crew 4X4

    "Hold it to the floor till you see God.... Then Brake!!!!"

  4. #4


    I've been looking for a new GM for months and one issue that keeps coming up is even though dealerships have lots of trucks in inventory or access to large inventorys of new trucks they dont want to go out of their region to get a specific vehicle and most of the vehicles available arent premium vehicles so that you dont have as good a choice for color or options.
    Or your stuck with regional packages you dont want. It's still not a great time to buy a new truck just yet, I'm thinking this fall as we get closer to the new year things will really get in a panic when dealers have to pay tax on some of their inventory they'll be ready to really deal.

  5. #5


    Agreed, the stage is set for some good deals but if it's not really the truck you want then it's not really a good deal. My dad has been looking for a 1500 with the 6.2 but local dealers just aren't stocking them. If dealers are having problems with high inventory, then the last thing they want to do is bring another truck in.

    2007 Suburban 1500

    2001 Silverado 1500 LS 2WD
    Custom Interior, Rims, Exhaust

  6. #6

    Cool Now is the time.... save a ton of $. The dealers in my area are starting to panic because they got so many 2011's. So , knowing this I bought a 2011 Silverado for almost 12,000 off the sticker of 39,000. Best deal I ever got on a new truck. You have to be willing to go with White, Black, Red or Grey/Silver becuse thats all they got for some strange reason, I got lucky and found a special order Laser Blue Metallic LT with the Chrome package including the 20'' Chrome wheels. I have only ever seen 2 or 3 of these and it really stands out in the crowd. I will post up some pics one of these days.

  7. #7


    Congrats on the new truck.
    The color issue has slowed me down from purchasing, I want a dark blue truck and as you noted they have a large stock of certain color trucks.
    History tells me I'll keep any new truck a long time (I've owned my present truck 12 yrs) so I'm holding out for a truck I like in all respects because it'll be in the driveway a long time.

  8. #8
    Legend Bigbomber's Avatar
    Join Date
    Feb 2010


    My dealer is using 2 lots other than their own to park their new trucks on.I have never seen so many trucks on their lots.
    [/SIGPIC]2009 Chevy Silverado LT 1500 EXT CAB 4X4 Vortec 4.8L SFI,K&N air filter,Weathertech Floor Liners ,Weathertech Stone/Bug Deflector, Line X Spray On Bedliner, TruXport Rollup Tonneau Cover, Molded Mudguards, Viper 5701 LE 2 way Security Alarm/Remote Starter, Xm Satelite Radio,BILSTEIN 5100 rear shocks,BILSTEIN 5100 front levelling shocks,READYLIFT 2" rear lift blocks,Goodyear Wrangler Territorys -265/70R 17"

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